Key components, as Nigerian government proposes N47.9 trillion budget for 2025
The Nigerian Federal Executive Council (FEC) has proposed a budget of N47.9 trillion for the fiscal year 2025.
This proposal was disclosed by the Minister of Budget and Economic Planning, Atiku Bagudu, following a meeting chaired by President Bola Tinubu.
The budget is part of the Medium-Term Expenditure Framework (MTEF) for the years 2025 to 2027 and aligns with the Fiscal Responsibility Act of 2007.
Key components of the proposed budget include crude oil benchmark and production targets, as the government set a crude oil price benchmark at $75 per barrel while oil production is targeted at 2.06 million barrels per day.
Meanwhile, the proposed exchange rate is pegged at N1,400 to one US dollar, and to finance the budget deficit, new borrowings amounting to N9.2 trillion are included in the proposal.
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The government aims for a Gross Domestic Product (GDP) growth rate of 6.4%, building on an existing growth rate of 3.19% as recorded in the second quarter of 2024.
The budget emphasizes tackling inflation, strengthening economic resilience, supporting employment generation sectors, improving the business environment, and enhancing youth development and social investment programs.
The government claims that a review of the implementation of the 2024 budget indicated promising trends in revenue collection and expenditure management, despite some shortfalls in prorated targets.
Budget implementation process in Nigeria involves several key steps and components that reflect the government’s fiscal policies, priorities, and financial management practices. Understanding this process requires a detailed examination of how budgets are formulated, approved, executed, and monitored at both federal and state levels.
