President Bola Ahmed Tinubu has signed the N54.99 trillion 2025 appropriation bill into law, marking a 99.96% increase from the 2024 budget of N27.5 trillion.
The bill, which was approved by the National Assembly on February 13, followed revisions to Tinubu’s initial budget proposal of N49.7 trillion.
Breakdown of the 2025 Budget
The N54.99 trillion budget is structured as follows:
- Statutory transfers: N3.65 trillion
- Recurrent (non-debt) expenditure: N13.64 trillion
- Capital expenditure: N23.96 trillion
- Debt servicing: N14.32 trillion
- Deficit-to-GDP ratio: 1.52%
In his February 5 request to the National Assembly for a budget increase, Tinubu attributed the revision to additional revenue sources from key government agencies.
“This represents a pivotal opportunity to address Nigeria’s critical challenges and advance its development agenda,” Tinubu stated.
The key revenue adjustments include:
- Government-Owned Enterprises (GOEs): N1.82 trillion
- Federal Inland Revenue Service (FIRS): N1.49 trillion (Federal Government’s 52% share of the increase in revenue from N22.1 trillion to N25.1 trillion)
- Nigeria Customs Service (NCS): N1.20 trillion (Federal Government’s 52% share of the increase in revenue from N6.5 trillion to N9.0 trillion)
“With this additional revenue, the 2025 appropriation bill’s total budget size will increase from N49.7 trillion to N54.2 trillion, demonstrating our commitment to inclusive growth and security,” Tinubu added.
Economic Assumptions and Projections
In line with the 2025-2027 Medium-Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), the National Assembly approved the following parameters for the budget:
- Oil benchmark prices:
- $75 (2025),
- $76.2 (2026),
- $75.3 (2027)
- Daily crude oil production targets:
- 2.06 million barrels per day (2025)
- 2.10 million barrels per day (2026)
- 2.35 million barrels per day (2027)
- Projected GDP growth rates:
- 4.6% (2025),
- 4.4% (2026),
- 5.5% (2027)
- Projected exchange rate:
- N1,400/$, subject to review in early 2025 in line with monetary and fiscal policies.
