The Federal Executive Council (FEC) has approved a budget proposal of N47.9 trillion for the 2025 fiscal year, with plans to borrow N13.8 trillion to fund key projects. This decision was announced by the Minister of Budget and Economic Planning, Atiku Bagudu, during a briefing with State House correspondents following the FEC meeting, which was presided over by President Bola Tinubu at the Presidential Villa in Abuja.
The approval is part of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper for 2025-2027, in line with the Fiscal Responsibility Act of 2007. The proposed framework is expected to be submitted to the National Assembly by Friday or Monday, as mandated by law.
Bagudu provided an overview of key economic assumptions for the 2025 budget, which include a projected Gross Domestic Product (GDP) growth rate of 4.6%, an oil price benchmark of $75 per barrel, and an exchange rate of N1,400 to $1. The government also forecasts oil production at 2.06 million barrels per day.
To finance crucial infrastructure and economic initiatives, the government plans to borrow N13.8 trillion, which represents about 3.87% of the GDP. Bagudu stressed that the borrowing is part of a broader fiscal strategy aimed at balancing government spending with sustainable debt management.
The Minister also highlighted that the Nigerian economy is showing resilience, with a recorded growth rate of 3.19% in the second quarter of 2024. This growth is expected to continue into 2025, supported by efforts to combat inflation and stabilize key sectors of the economy.
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