*PBAT
President Bola Ahmed Tinubu is planning to borrow N13 trillion loan to cover the deficit in the N49.7 trillion 2025 budget.
Tinubu on Wednesday presented the 2025 budget proposal to a joint session of the National Assembly, outlining an ambitious N49.70tn spending plan titled “Budget of Restoration: Securing Peace, Rebuilding Prosperity.”
The budget prioritises defence, infrastructure, and human capital development, with a projected deficit of N13.39tn to be financed through borrowing.
ministration’s commitment to strengthening security and revamping the nation’s infrastructure.
Defence and security were allocated N4.91tn, while infrastructure will receive N4.06tn for projects such as the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Highway.
The President also announced significant allocations for education and health. Education will receive N3.52tn, which includes funding for Universal Basic Education and nine new higher institutions, while the health sector will get N2.48tn to improve healthcare systems and provide essential drugs for public hospitals.
He emphasised the need to empower young Nigerians and improve access to quality healthcare as part of his administration’s human capital development strategy.
Tinubu noted that the government expected N34.82tn in revenue for 2025, leaving a deficit of N13.39tn, representing 3.89 per cent of Nigeria’s Gross Domestic Product.
He explained that the deficit would be financed through borrowing, stressing that this approach is necessary to achieve the government’s developmental goals.
The budget is based on key economic assumptions, including a projected decline in inflation from 34.6 per cent to 15 per cent and an improvement in the naira exchange rate from N1,700 per dollar to N1,500 per dollar.
The administration also expects oil production to reach 2.06 million barrels per day, driven by increased export capacity and reduced upstream costs.
“The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socio-economic fabric of our society,” Tinubu stated.
“In 2025, we are targeting N34.82tn in revenue to fund the budget. Government expenditure in the same year is projected to be N49.70tn, including N15.81tn for debt servicing.
“A total of N13.08tn, or 3.89 percent of GDP, will make up the budget deficit. This is an ambitious but necessary budget to secure our future.
“The budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira, and a base crude oil production assumption of 2.06 million barrels per day.”
Reflecting on economic achievements, Tinubu highlighted that Nigeria’s GDP grew by 3.46 per cent in the third quarter of 2024, compared to 2.54 per cent in the same period of 2023.
He added that foreign reserves now stand at $42bn, providing a buffer against external shocks, while the trade surplus has risen to N5.8tn, indicating the positive impact of export growth.
The President acknowledged the challenges facing the economy, including inflation and insecurity, but assured Nigerians that the reforms undertaken by his administration were beginning to yield results.
He expressed optimism that sacrifices made during the reform process would pave the way for long-term economic stability and growth.
Tinubu described the 2025 budget as a continuation of his administration’s efforts to rebuild the economy and foster inclusive growth.
He emphasised the importance of enhancing national security, revitalising infrastructure, and investing in agriculture to achieve food security and reduce hunger. He also reiterated his administration’s commitment to supporting the private sector as a key driver of economic transformation.
In his closing remarks, Tinubu called for collective action to address the country’s challenges, urging Nigerians to support the government’s efforts to secure peace and rebuild prosperity.
The Director-General, Budget Office of the Federation, Tanimu Yakubu, described the budget as a bold response to Nigeria’s pressing challenges, designed to restore stability and rebuild trust in governance.
He noted that the Federal Government projects total revenue of N36.35tn for 2025, driven by improved non-oil revenue streams, including expanded tax collections, customs duties, and earnings from government-owned enterprises.
The 2025 budget proposal now awaits deliberation and approval by the National Assembly.///
