FEC Approves N47.960trn 2025 Budget Proposal

Nigeria’s Federal Executive Council (FEC), has approved the 2025 Budget Proposal of N47.960 trillion.

Minister of Budget and Economic Planning, Atiku Bagudu, made this known while briefing State House correspondents at the end of the FEC meeting at the Presidential Vila Abuja on Monday.

The proposed budget reflects an increase of 36.8 per cent from the 2024 estimate.

According to the minister, the 2025 Appropriation Bill was based on oil price benchmark price of $75 per barrel, 2.06 million barrels per day target for oil production, and an exchange rate of N1400 to one dollar.

“The 2025 budget proposal articulates the federal government financial plan for the 2025 fiscal year and aligns with the renewed hope agenda and the national development plan, 2021, 2025,” Bagudu stated.

The minister pointed out that the budget parameters, including benchmark oil price, oil production target and exchange rate, have already been included in the medium term expenditure framework that has been presented and approved by the National Assembly.

Bagudu revealed that the total projected revenue for the 2025 budget is N34.820 trillion (thirty-four trillion, eight hundred and twenty billion naira).

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He explained that the deficit for 2025 is projected at N13.13 trillion representing 3.89 per cent of GDP.

“The 2025 framework is based on a benchmark oil price benchmark of 75 dollar per barrel, oil production of 2.06 million barrels per day and the exchange rate of 1400 naira. All these are already included in the medium term expenditure framework of which we have presented here, which have also been approved by the National Assembly.

“So, the total projected revenue for 2025 stands at N34,820 trillion out of which the expenditure is projected at N47,960 trillion which is an increase of 36.8% from the 2024 estimate, the deficit for 2025 is projected at N13.13 trillion representing 3.89% of GDP,” the minister stated, adding that the Tinubu’s administration inherited N6.1 trillion deficit from the 2023 budget.

The budget proposal presentation to the National Assembly which was initially scheduled for Tuesday, 17 December 2024 has been postponed.

Speaking on the postponement of the budget proposal presentation, Minister of Information and National Orientation, Mohammed Idris, said both the Executive arm and the leadership of NASS are still engaging on the day for presentation of the budget. He hinted that the presentation might take place on Wednesday, 18 December 2024.