FEC approves 2025 budget proposal

The Federal Executive Council (FEC) on Monday approved the 2025 budget proposal, following the earlier submission of the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP) to the National Assembly.

The Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this at the end of the council meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.

Providing details, he emphasized the alignment of the budget with the administration’s Renewed Hope Agenda and the National Development Plan (2021–2025).

According to him, the 2025 budget proposal outlines the federal government’s fiscal plan, which aims to consolidate progress achieved in 2024 while addressing persistent economic challenges.

The budget is based on an oil price benchmark of $75 per barrel, with a production target of 2.06 million barrels per day.

It assumes an exchange rate of N1,400 to the US dollar.

The projected revenue is N34.82 trillion, while the projected expenditure is N47.96 trillion, reflecting a 36.8% increase from the 2024 estimate.

The minister added that the budget deficit stands at N13.13 trillion, equivalent to 3.89% of GDP—a reduction from the 6.1% inherited from the 2023 budget.

Bagudu noted that these parameters are consistent with the MTEF and FSP.

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He explained that the 2025 fiscal plan aims to reinforce macroeconomic stability and foster growth across various sectors, including building on security gains to improve national stability.

The budget also seeks to enhance critical infrastructure to boost productivity, while investing in education, health, and skill-building initiatives.

Additionally, it focuses on expanding industrial activity to create jobs and diversify the economy, strengthening the National Agricultural Development Fund to support food security, and advancing gas and compressed natural gas (CNG) initiatives to reduce reliance on petrol.

Another priority is promoting affordable housing schemes to address the housing deficit.

Bagudu highlighted that these initiatives are designed to expand economic activity, create consumer credit opportunities, and ensure inclusive growth.

Following a presentation by the Director of the Budget Office, President Tinubu directed amendments to the proposal to incorporate comments from FEC members.

These adjustments aim to ensure fiscal prudence and alignment with national priorities, Bagudu stated.

Reflecting on the administration’s economic performance in 2024, Bagudu pointed to successes in reducing the deficit and achieving significant milestones in infrastructure, security, and economic stability.

“The 2025 budget builds on these gains to ensure sustained growth and development,” he said.

According to the minister, the approved budget proposal will be presented to the National Assembly for legislative approval within the next 48 hours, following consultations with lawmakers.