The Nigerian Government has approved an annual budget of N47.9 trillion for 2025.
Nigeria’s Minister of the Budget and Economic Planning, Mr. Abubakar Bagudu, told journalists after this week’s Federal Executive Council meeting on Thursday in Abuja that the proposed 2025 budget size of N47.9tn has new borrowings of N9.22 trillion,
He said that the meeting also approved the Medium-Term Expenditure Framework (MTEF) for 2025 – 2027 and Fiscal Strategy Paper.
“The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, which was presented by the Director-General of the Budget Office Mr. Tanimu Yakubu on the Medium-Term Expenditure Framework and Fiscal Strategy Paper for 2025 – 2027.”
According to him, the MTEF is a critical tool the government uses to outline its fiscal strategy over three years, establishes macroeconomic assumptions and targets that guide national budgeting.
It also includes projections of key economic variables such as oil prices, exchange rates, inflation, and growth rates.
He added that in the 2025-2027 period, the MTEF sets out parameters, including an oil price benchmark of $75 per barrel, an oil production target of 2.06 million barrels per day, an exchange rate of N1,400 to the US dollar and a GDP growth rate of 4.6 per cent.
The Nigerian government, according to the minister, projects aggregate expenditure for 2025 at N47.9tn with planned borrowing of N13.8tn, which is about 3.87 per cent of the GDP.
However, the proposed 2025 budget will be presented to the National Assembly (Parliament) by President Bola Tinubu for assessment and approval before it is signed into law.
GIK/APA