The Federal Government has projected a revenue of N36.35 trillion for 2025.
On the heels of President Bola Tinubu’s 2025 budget proposal presentation to the National Assembly on Wednesday, the Director-General, Budget Office of the Federation, Mr. Tanimu Yakubu said that the budget is anchored on improved non-oil revenue generation. These, he explained, included expanded tax collections, customs duties, and independent revenue from government-owned enterprises, alongside oil revenue projections based on a crude oil benchmark of $75 per barrel, a production target of 2.06 million barrels per day, and an exchange rate of N1,500 per the United States dollar.
Yakubu described the budget proposal as a “historic figure representing an ambitious yet pragmatic approach to Nigeria’s current economic realities. This financial blueprint is centered on three strategic priorities: security, infrastructure development, and human capital investment. These priorities are designed to restore stability, rebuild trust in governance, and create the conditions necessary for broad-based prosperity”.
He gave total expenditure protection at N49.7 trillion, which includes significant allocations to critical sectors, while targeting a fiscal deficit of N13.39 trillion (3.96 per cent of GDP). “This deficit will be financed through domestic and external borrowings as well as innovative public-private partnership (PPP) arrangements”, he said.
The proposed 2025 budget is set at N49.7 trillion, a historic figure representing an ambitious yet pragmatic approach to Nigeria’s current economic realities. This financial blueprint is centered on three strategic priorities: security, infrastructure development, and human capital investment. These priorities are designed to restore stability, rebuild trust in governance, and create the conditions necessary for broad-based prosperity.
Revenue and expenditure projections
The Federal Government projects a total revenue of N36.35 trillion for 2025, anchored on improved non-oil revenue generation. This includes expanded tax collections, customs duties, and independent revenue from government-owned enterprises, alongside oil revenue projections based on a crude oil benchmark of $75 per barrel, a production target of 2.06 million barrels per day, and an exchange rate of N1,500 per USD.
The total expenditure of ₦49.7 trillion includes significant allocations to critical sectors while targeting a fiscal deficit of ₦13.39 trillion (3.96% of GDP). This deficit will be financed through domestic and external borrowings as well as innovative public-private partnership (PPP) arrangements.
Key budgetary priorities
1. Security
Recognizing that peace is the bedrock of progress, the Federal Government has allocated ₦5 trillion to security. These funds will strengthen the capabilities of the armed forces, police, and intelligence agencies to combat insurgency, banditry, and other forms of insecurity. The goal is to restore law and order and create an environment conducive to economic growth.
A significant portion of the capital expenditure—estimated at ₦16 trillion—will focus on infrastructure. This includes the completion of critical road projects, expansion of rail networks, enhancement of power infrastructure, and investments in housing. These initiatives aim to reduce transaction costs, stimulate investment, and create jobs.
The government is prioritizing education and healthcare to build a productive and resilient workforce. The budget earmarks over ₦6 trillion for social services, targeting improved access to quality education, modernized healthcare infrastructure, and expanded social safety nets.
To ensure food sufficiency and reduce reliance on imports, ₦826.5 billion has been allocated to agricultural mechanization, irrigation projects, and value-chain development. This will not only boost food production but also support economic diversification and rural development.Reforms for fiscal sustainability
The 2025 budget builds on critical reforms initiated by President Bola Ahmed Tinubu’s administration, including:
• Tax Reform: The government is expanding the tax base, improving compliance through technology, and aligning taxation with equity and efficiency principles.
• Fuel Subsidy Removal: Savings from this bold policy are being redirected to targeted social programs, such as conditional cash transfers and public transportation initiatives, to protect vulnerable Nigerians.
• Debt Management: While borrowing remains a key tool to bridge the fiscal deficit, the government is committed to ensuring that debt servicing does not crowd out investments in critical sectors.
Conclusion: A restorative vision
The “Budget of Restoration” is not merely a financial plan—it is a declaration of intent. It embodies the government’s resolve to tackle insecurity, close infrastructure gaps, and empower the Nigerian people through targeted investments in human capital and economic development.
However, the success of this ambitious proposal depends on disciplined implementation, transparency, and collaboration with all stakeholders. I am confident that with the support of Nigerians and our partners, we can restore peace, rebuild prosperity, and secure a brighter future for our nation.
