The Federal Executive Council (FEC) on Monday approved the proposed sum of N47.96 trillion naira for the year 2025 budget.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, disclosed this while briefing newsmen after the council meeting presided over by President Bola Tinubu at the Presidential Villa, Abuja.
The minister explained that the 2025 framework was based on an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1,400 to a dollar.
“Today, the Federal Executive Council approved the budget proposals for 2025 with amendments, which Mr. President directed following a presentation to the Federal Executive Council led by the Director General of the Budget Office, Tanimu Yakubu.
“The 2025 budget proposal articulates the federal government’s financial plan for the 2025 fiscal year and aligns with the Renewed Hope Agenda and the National Development Plan, 2021–2025.
“Earlier, the Medium-Term Expenditure Framework and Fiscal Strategy Paper was designed to build on the advances in macroeconomic stability, security gains, infrastructure development, human capital development efforts, and creative industries, as well as manufacturing and measures to expand economic activity. These include consumer credit, the National Agricultural Development Fund, the gas and CNG initiative, and the housing initiative—all intended to drive economic activity and build on the successes noted in 2024.
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“The 2025 framework is based on a benchmark oil price of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1,400 to a dollar. These are already included in the Medium-Term Expenditure Framework, which has been presented and approved by the National Assembly.
“The total projected revenue for 2025 stands at N34.82 trillion, while expenditure is projected at N47.96 trillion—an increase of 36.8% from the 2024 estimate. The deficit for 2025 is projected at N13.13 trillion, representing 3.89% of GDP.
“If you recall, this administration inherited a N6.1 trillion deficit from the 2023 budget. However, given the successes achieved in 2024, we were still able to maintain the deficit.”
The minister added that comments were taken from members of the executive council, and the president directed some consequential adjustments while approving the figures.
On why the budget proposal presentation to the National Assembly was shifted from Tuesday, December 17, 2024, to Wednesday, December 18, 2024, the Minister of Information and National Orientation, Mohammed Idris, explained that the National Assembly had yet to communicate the date and time for the presentation to the executive.
He stated that before the budget presentation, the executive arm usually engages with the leadership of the National Assembly to agree on a suitable date and time. The parliament would then communicate the chosen period for such an important engagement.
The minister assured that engagements were ongoing between the two arms of government and expressed optimism that the budget proposal presentation would take place on Wednesday.
