The Federal Executive Council (FEC) has approved the 2025 Budget proposal, setting an oil price benchmark of $75 per barrel and projecting expenditures at N47.96 trillion, marking a 36.8% increase from the 2024 budget.
The approval was announced by the Minister of Budget and Economic Planning, Atiku Bagudu, on Monday following the council’s final meeting of the year at the Aso Rock Presidential Villa in Abuja.
Bagudu explained that the budget proposal was presented by the Director-General of the Budget Office, Tanimu Yakubu, and subsequently amended in line with President Bola Tinubu’s directives.
He highlighted key parameters underpinning the 2025 fiscal framework, including oil production set at 2.06 million barrels per day and an exchange rate of N1,400 to the dollar.
“The Federal Executive Council has approved the 2025 budget after careful deliberation and adjustments as directed by Mr. President,” Bagudu told State House correspondents.
The 2025 fiscal plan projects total revenue at N34.82 trillion, reflecting government efforts to boost earnings amid economic reforms and growing fiscal responsibilities. However, expenditures of N47.96 trillion result in a significant deficit of N13.13 trillion, equivalent to 3.89% of the nation’s Gross Domestic Product (GDP).
The budget framework underscores the government’s commitment to balancing economic growth with increased spending on critical sectors such as infrastructure, education, and healthcare. Despite the widened deficit, officials are optimistic that improved oil revenue, strategic borrowing, and diversification efforts will bolster fiscal stability.
Economic analysts note that the $75 oil benchmark aligns with global oil price forecasts, though volatility in international markets could pose risks.
The oil production target of 2.06 million barrels per day is also ambitious, given challenges in Nigeria’s oil sector, including production disruptions and theft.
