President Bola Tinubu has submitted the 2025-2027 Medium Term Expenditure Framework and Fiscal Strategy Paper to the National Assembly for approval.

The proposal includes a budget of N47.9 trillion for the 2025 fiscal year, representing a 35% increase from the 2024 total budget of N35.5 trillion.

The proposed budget breaks down into several key areas, including a non-debt recurrent expenditure of N9.92 trillion, capital expenditure of N7.72 trillion, debt service of N8.25 trillion, statutory transfer of N1.37 trillion, and a sinking fund of N243.66 billion.

The budget proposal projects a gross domestic product growth rate of 4.6%, crude oil price of $75 per barrel, exchange rate of N1400/dollar, and oil production of 2.06 million barrels per day.

Briefing State House Correspondents after approval of the proposal by the Federal Executive Council  (FEC) presided over by President Tinubu in Abuja last week, the Minister of Budget and Economic Planning, Atiku Bagudu, said, “Key parameters for the 2025 to 2027 MTEF include an oil price benchmark of $75 per barrel for 2025, oil production set at 2.06 million barrels per day, and a projected exchange rate of 1,400 Naira to the US Dollar, as well as GDP growth target of 4.6% for 2025.

For 2025, the federal government budget estimate is, is the aggregate expenditure is estimated at 47 trillion, and this includes a borrowing of 13 point 8 trillion, which is 3.87% of the estimated GDP and it includes projections, especially for the first time, provisions for contribution to the development commissions that have been passed by the National Assembly or are in the process of being passed by the National Assembly.

“Equally, the fiscal objectives were conservative because we want to ensure that we study the course much as we believe the projections will be exceeded.

“The budget size that was approved for presentation to the National Assembly in the mtef is 47 point 9 trillion, with new borrowings of 9.2 trillion to finance the budget deficit in 2025 as well as noting that we need to sustain the market deregulation, commendable market deregulation of petroleum prices and exchange rate.

“And to compel the Nigerian National Petroleum Corporation Limited to lower its oil and gas production cost significantly, and even to consider the need to amend the relevant sections of the Petroleum Industry Act 2021 to address the significant risk to Federation.”