President Bola Tinubu’s government is planning to spend N8.97tn of its projected N49.70tn budget on defence and security and infrastructure in 2025.
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.
Speaking at the National Assembly, Tinubu stressed his administration’s commitment to strengthening security and revamping the nation’s infrastructure.
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.