FEC approves ₦47.9t 2025 budget

The Minister of Budget and Economic Planning, Atiku Bagudu, shared this information today while briefing State House reporters following a meeting of the FEC led by President Bola Tinubu.

This approval is part of the Medium-Term Expenditure Framework (MTEF) for 2025 to 2027 and complies with the Fiscal Responsibility Act of 2007.

Bagudu explained, “The fiscal objectives set are conservative as we aim to carefully assess the situation, even though we believe projections may be exceeded. The budget approved for presentation to the National Assembly under the MTEF is ₦47.9 trillion, which includes new borrowings of ₦9.2 trillion to cover the budget deficit for 2025.”

He emphasized the importance of continuing market deregulation, particularly regarding petroleum prices and exchange rates, and urged the Nigerian National Petroleum Corporation Limited to significantly reduce oil and gas production costs.

He also suggested the need to amend relevant sections of the Petroleum Industry Act of 2021 to mitigate risks to the Federation.

The Federal Executive Council approved the Medium-Term Expenditure Framework and the fiscal strategy paper, which will be submitted to the National Assembly alongside existing bills, including those related to economic stabilization and tax reform.

Bagudu expressed confidence in achieving strong growth in 2025.

During the meeting, the FEC also confirmed its submission to the National Assembly as mandated by the 2007 Fiscal Responsibility Act.

The framework forecasts a GDP growth rate of 4.6 percent, an exchange rate of $75 to the naira, and oil production levels at 2.06 million barrels per day.