FEC okays 2025 budget proposal

***Bill may be presented to NASS within 48 hours

By Egena Sunday Ode

The Federal Executive Council (FEC) has approved the 2025 budget proposal following the earlier submission to the National Assembly (NASS) of the Medium Term Expenditure Framework and Fiscal Strategy Paper (MTEF-FSP).
Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this at the end of the council meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
The proposed budget is likely to be presented to the NASS on Wednesday as against earlier speculations of Tuesday (today).
The approval of the budget is coming barely two weeks to the end of the year, a development that may negate the January to December budget circle the Tinubu administration has been emphasising.
Giving details, Bagudu emphasized the alignment of the 2025 budget with the administration’s Renewed Hope Agenda and the National Development Plan (2021–2025).
According to him, the 2025 budget proposal outlines the federal government’s fiscal plan, aimed at consolidating the progress achieved in 2024 while addressing persistent economic challenges.
The budget is based on oil price benchmark of $75 per barrel with a production target of 2.06 million barrels per day.
It has an exchange rate of N1,400 to the US dollar.
The projected revenue is N34.82 trillion while the projected expenditure is N47.96 trillion, reflecting a 36.8% increase from the 2024 estimate.
The minister added that the budget deficit N13.13 trillion, equivalent to 3.89% of GDP, which is a reduction from the 6.1% inherited from the 2023 budget.
Bagudu noted that these parameters are consistent with the MTEF and FSP.
He explained that the 2025 fiscal plan aims to reinforce macroeconomic stability and foster growth across various sectors, including security gains and building on efforts to improve national stability.
The budget also hopes to enhance critical infrastructure to boost productivity, invest in education, health, and skill-building initiatives.
Similarly, it hopes to expand industrial activity to create jobs and diversify the economy; strengthen the National Agricultural Development Fund to support food security, and advance the gas and compressed natural gas (CNG) initiatives to reduce reliance on petrol.
Another area it focuses on is promoting affordable housing schemes to address the housing deficit.

Bagudu highlighted that these initiatives are designed to expand economic activity, create consumer credit opportunities, and ensure inclusive growth.

Following a presentation by the Director of the Budget Office, President Tinubu directed amendments to the proposal, incorporating comments from FEC members.

These adjustments aim to ensure fiscal prudence and alignment with national priorities, Bagudu stated.

Reflecting on the administration’s economic performance in 2024, Bagudu pointed to successes in reducing the deficit and achieving significant milestones in infrastructure, security, and economic stability.

“The 2025 budget builds on these gains to ensure sustained growth and development,” he stated.
According to the minister, the approved budget proposal will be presented to the National Assembly for legislative approval in the next 48 hours following consultations with the lawmakers.