The Federal Executive Council (FEC) yesterday approved a borrowing plan of N13.8 trillion to finance the 2025 proposed budget of N47.9 trillion.
Alhaji Atiku Bagudu, the Minister of Budget and Economic Planning, disclosed this to State House correspondents after the Federal Executive Council (FEC) meeting at the Presidential Villa in Abuja chaired by President Bola Tinubu.
The approval falls under the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper for 2025-2027, as mandated by the Fiscal Responsibility Act of 2007.
In accordance with statutory requirements, we will forward the MTEF and Fiscal Strategy Paper to the National Assembly by Friday or Monday.
Bagudu outlined several key parameters that will guide the 2025 budget based on economic projections and government priorities.
These include a projected Gross Domestic Product (GDP) growth rate of 4.6% for 2025, an oil price benchmark of $75 per barrel, and an exchange rate of N1.400 to $1.
Additionally, the government anticipates oil production at 2.06 million barrels per day.
In terms of fiscal strategy, the budget assumes that the government will borrow approximately N13.8 trillion—about 3.87% of the GDP—to fund key infrastructure projects and economic initiatives.
The minister emphasized that this borrowing is part of a strategic plan to balance government spending with sustainable debt management.
Bagudu further noted that “the Nigerian economy is showing signs of resilience, with a 3.19% growth rate recorded in the second quarter of 2024.
“This growth is expected to continue through 2025, driven by efforts to tackle inflation and stabilize key economic sectors.”
The minister emphasized that the Federal Government’s fiscal policies aim to enhance economic resilience, persistently tackle inflationary pressures, and offer more focused assistance to propel long-term growth.
According to him, the 2024 budget implementation is progressing smoothly, with notable enhancements in revenue collection and expenditure management, despite some delays in meeting pro-rated targets.
Non-oil revenue streams have exceeded initial expectations, demonstrating promising growth.
The proposed N47.9 trillion 2025 budget allocates funds to key areas, including infrastructure development, social programs, and critical national projects.
Bagudu also disclosed that the government’s budget will, for the first time, include contributions to the development commissions that the National Assembly had recently passed or was in the process of passing.
He further noted that the federal government is committed to ensuring that the 2025 budget is passed and signed into law before December 2024, in order to create a predictable fiscal environment and adhere to the January-December budget circle that the administration aims to implement moving forward.
In addition to approving the 2025 budget, the FEC also endorsed the 2025-2027 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Papers, FSP, which outline the government’s long-term fiscal policies and strategies for achieving sustainable growth.
These documents will now be sent to the National Assembly for further review.
Bagudu emphasized that the MTEF and FSP provided the necessary roadmap for the government’s fiscal policy over the next three years, ensuring that public finances remained on a sound footing and that economic growth targets were met.
He expressed confidence that Nigeria’s economic trajectory was moving in the right direction, with positive growth recorded in key sectors.
He stressed that the government’s macroeconomic policies, particularly in the areas of market-driven pricing for petroleum products and foreign exchange, are contributing to the country’s overall economic stability.
He said: “The fiscal efforts are on track, and we are confident that with these strategic investments and reforms, Nigeria will continue to make progress toward a more resilient and sustainable economy.”
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