Nigeria’s 2025 budget, labeled as a “Budget of Restoration,” totals N54.99 trillion, almost doubling 2024’s budget. Minister Bagudu and President Tinubu emphasize this budget’s role in fostering economic growth, addressing inflation, and investing in key sectors like security and infrastructure while ensuring financial prudence and accountability.
Abubakar Atiku Bagudu, the Minister of Budget and Economic Planning of Nigeria, presented the 2025 budget, which he described as bold and essential for supporting economic growth. This ambitious proposal, termed the “Budget of Restoration,” amounts to N54.99 trillion, nearly doubling the previous year’s budget of N27.5 trillion. Bagudu emphasized that this budget aims to secure Nigeria’s future and facilitate prosperity recovery.
Nigeria’s economy grew by 3.84 percent in year-on-year terms in the fourth quarter of 2024, demonstrating its fastest growth rate since 2021. This notable increase was fueled by advancements in the services sector and sustained efforts towards food security, as reported by the National Bureau of Statistics (NBS). Bagudu affirmed the improved economic trajectory, stating that the budget’s objective is to stabilize the economy and promote growth while addressing inflation issues.
Bagudu credited the strategies employed by the government led by President Bola Tinubu, affirming, “We are not where we want to be as a country,” while praising public support for these economic reforms. He communicated optimism regarding investors’ appreciation for the administration’s reform choices. The budget allocates substantial investments across critical sectors, including national security, infrastructure, and human capital development.
Specifically, the budget allocates N6.11 trillion for national security, N5.99 trillion for infrastructure, N5.70 trillion for human capital development, N3.73 trillion for agriculture and food security, and N723.68 billion for social welfare initiatives. Additionally, the budget includes N1.5 trillion for recapitalizing the Bank of Industry and N1 trillion to enhance the solid minerals ministry.
A significant rise in capital expenditure is noted, increasing to N23.4 trillion (42.6 percent of total spending), compared to N7.72 trillion in 2024. Concurrently, the recurrent allocation climbed to N14.2 trillion, marking a 20.34 percent rise from the previous year. However, debt servicing requires N14.32 trillion, resulting in a fiscal deficit of N9.22 trillion and a deficit-to-GDP ratio of 1.52 percent.
President Tinubu highlighted the importance of financial prudence, stating, “We cannot spend what we do not have.” He emphasized that while the fiscal deficit has been reduced, the focus will remain on enhancing government revenues without excessive borrowing. The administration will also prioritize public-private partnerships and foreign investments to support key projects, all while ensuring accountability in spending initiatives. He concluded by expressing that the budget serves as a commitment towards security and prosperity for Nigerian citizens.
The 2025 Nigerian budget, presented by Minister Bagudu, is characterized by significant allocations aimed at fostering economic growth and stability. With a total of N54.99 trillion, the budget reflects a strategic increase from the previous year and addresses critical sectors essential for national development. President Tinubu’s emphasis on financial responsibility and public-private partnerships indicates a commitment to sustainable economic practices. Overall, the budget aims to restore and secure the nation’s economic future while enhancing public welfare.
Original Source: businessday.ng
