BREAKING: FEC approves N47.96 Trillion Budget for 2025 with significant increase in expenditure

The Federal Executive Council (FEC) has approved a 2025 budget expenditure of N47.96 trillion, reflecting a 36.8% rise compared to the 2024 budget.

This decision was reached during the Council’s final meeting of 2024, held on Monday at the State House, Abuja.

Addressing journalists after the meeting, Minister of Budget and Economic Planning Atiku Bagudu highlighted the key economic parameters underpinning the 2025 budget framework. These include an oil price benchmark of $75 per barrel, a daily oil production estimate of 2.06 million barrels, and an exchange rate projection of N1,400 to the dollar.

The proposed revenue for the year is set at N34.82 trillion, leaving a budget deficit of N13.13 trillion, equivalent to 3.89% of the Gross Domestic Product (GDP). Bagudu noted that the budget incorporates amendments recommended by President Bola Ahmed Tinubu, as presented by the Director-General of the Budget Office, Tanimu Yakubu.

“Today, the Federal Executive Council approved the budget proposals for 2025 with amendments which Mr president directed following a presentation to the Federal Executive Council led by the Director General of the Budget Office, Tanimu Yakubu.

“The 2025 framework is based on oil price benchmark of $75 per barrel. Oil production of 2.06 million barrels per day. Exchange rate of one 1400 naira (to the dollar).

“All these are already included in the medium term expenditure framework which we have presented here, which have also been approved by the National Assembly.

“So the total projected revenue for 2025 stands at N34.82tn out of which the expenditure is projected at N47.96tn which is an increase of 36.8% from the 2024 estimate. The deficit for 2025 is projected at N13.13tn representing 3.89% of GDP”, Bagudu said.

Meanwhile, the presentation of the 2025 Appropriation Bill to the National Assembly by President Tinubu might not hold on tomorrow (Tuesday).

Reacting to a question after the Council meeting the Minister of Information and National Orientation, Mohammed Idris, disclosed that discussions were ongoing that might lead to the postponement of the budget presentation to Wednesday.

The Minister, who noted that the discussions were yet to be concluded, however said the possibility is there that the budget will be presented to the National Assembly on Wednesday instead of the Tuesday earlier announced by the President of the Senate, Senator Godswill Akpabio.

Akpabio, had, during plenary, last week announced that President Tinubu will present the 2025 budget on Tuesday.