President Tinubu on Friday 28th February Signed 2025 Budget of N54.99 Trillion Into Law, indicating an increase of 99.96 percent compared with 27.5 trillion naira in 2024.
Recall that 2024 Budget of N27.5 trillion became a shadow of itself after the presentation of 49.7 trillion naira and it subsequent increase to 54.99 trillion and passed by the national assembly on Feb. 13, 2025.
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The 2025 budget has a total expenditure component of ₦54.99 trillion, statutory transfers of ₦3.65 trillion and recurrent (Non-Debt) expenditure of ₦13.64 trillion.
The capital expenditure component is ₦23.96 trillion, debt servicing of ₦14.32 trillion and deficit-to-GDP Ratio of 1.52 per cent.
The 2025 budget is expected to address economic challenges, infrastructure gaps, and poverty as Christianed “Budget of Restoration: Securing Peace, Rebuilding Prosperity”.
The budget includes allocations for debt service, capital projects, recurrent non-debt expenditure, and statutory transfers.
The budget aims to address inflation, exchange rate volatility, and social inequalities, enhance economic diversification and governance, fostering inclusive growth, employment, and poverty reduction.
The decline in value of the budget due to foreign exchange turbulence may be a challenge as well as it revenue target due to crude oil prices and production target, couple with the challenges in dealing with oil theft.
The rate of poverty in the country may be higher than government’s allocation for social intervention to reduce poverty, this may require the collaboration of private sectors and state government’s sincere and deliberate interventions.
To have an all inclusive budget many have suggested that the naira most be stabilized through effective fiscal-monetary policies to improved revenue mobilization and managing debt servicing