Nigeria’s 2025 budget, totaling N54.99 trillion, aims to support economic expansion, emphasizing stability and growth through significant investments in various sectors. The budget, termed the “Budget of Restoration,” reflects a strategic approach to bolster the nation’s economy amid rising GDP figures and a concerted effort to manage public finances responsibly.
Nigeria’s 2025 budget, totaling N54.99 trillion, is characterized as bold, ambitious, and crucial for economic expansion, noted Abubakar Atiku Bagudu, Minister of Budget and Economic Planning. Speaking in Lagos post the KPMG Budget 2025 Day, he emphasized that the economy is progressing positively, with the budget being a continuation of this upward trajectory.
Referred to as the “Budget of Restoration,” the 2025 proposal is twice that of 2024’s N27.5 trillion and aims to secure Nigeria’s future while rebuilding prosperity. The country’s Gross Domestic Product (GDP) witnessed a growth of 3.84 percent in real terms in the fourth quarter of 2024, a notable increase from 3.46 percent in the preceding year, marking the fastest growth rate since 2021.
The highest economic growth in three years was attributed to significant expansion in the services sector and efforts to enhance food security, as reported by the National Bureau of Statistics (NBS). Bagudu indicated that the budget aims to stabilize the economy further and promote growth, highlighting a moderation in inflation, particularly food inflation, and the effectiveness of Nigeria’s economic reforms.
Under the leadership of President Bola Tinubu, the government has a strategic approach that is yielding positive outcomes. Bagudu expressed gratitude for the public’s support of these economic reforms, emphasizing increased investor confidence. The budget includes unprecedented allocations: National Security at N6.11 trillion, Infrastructure at N5.99 trillion, and Human Capital Development at N5.70 trillion, focusing on healthcare, education, and skills development.
Allocations are also made for Agriculture and Food Security (N3.73 trillion) to enhance local food production and assist vulnerable populations with Social Welfare (N723.68 billion). Additionally, capital expenditure for 2025 rises to N23.4 trillion, marking a significant increase in infrastructure investment.
The recurrent allocation for 2025 stands at N14.2 trillion, reflecting a 20.34 percent increase from the previous year, aimed at supporting public sector workers and addressing the national minimum wage of N70,000. The budget also allocates N14.32 trillion for debt servicing, while the fiscal deficit is set at N9.22 trillion, corresponding to a 1.52 percent deficit-to-GDP ratio.
During the budget signing, President Tinubu emphasized responsible spending, stating that every expenditure must be supported by actual revenue, and highlighted a need to avoid burdening future generations with excessive borrowing. A focus on public-private partnerships and foreign investments was also noted to finance key projects. The President asserted that the budget reflects a commitment to security, prosperity, and opportunities, urging collective efforts towards rebuilding the nation’s economy and ensuring a promising future for all Nigerians.
In summary, Nigeria’s N54.99 trillion budget for 2025 is designed to foster economic growth and security through significant investments in critical sectors. The government acknowledges the positive economic trajectory, with substantial growth in GDP and a strategic focus on infrastructure, human capital, and social welfare. The budget represents a commitment to effective fiscal management, aiming to stabilize the economy and avoid excessive borrowing, all while promoting public-private partnerships for sustainable development.
Original Source: businessday.ng
