In a move that marks a crucial moment for Nigeria’s fiscal future, President Bola Tinubu is expected to present the 2025 national budget to the Senate later this week. This announcement comes as the Senate Committee on Finance intensifies its review of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP), which are key prerequisites for the budget presentation.
The 2025 budget, projected to reach a staggering N47.9 trillion, is set to reflect the government’s economic priorities for the upcoming year. As part of the preparation process, Ministries, Departments, and Agencies (MDAs) are also expected to present their detailed expenditure plans for 2024, along with projections for the 2025 budget to the Senate Committee on Finance.
President Tinubu submitted the MTEF and FSP for the 2025 to2027 period to both the Senate and House of Representatives last Tuesday for review. These documents lay the groundwork for the national budget by outlining key economic assumptions and projections that will guide the budgeting process. Some of the key highlights from the proposed MTEF and FSP include:
An oil price benchmark of $75 per barrel, which is a key factor in determining government revenue from oil exports.
A daily oil production target of 2.06 million barrels, aiming to boost revenue from the oil sector.
A projected exchange rate of N1,400 to $1, reflecting current market trends and fiscal realities.
A GDP growth rate projection of 6.4%, which will guide economic planning for the country.
These figures will form the basis for detailed deliberations on the proposed N47.9 trillion budget, which will include allocations for various sectors such as infrastructure, education, healthcare, security, and the economy.
The 2025 budget is expected to shape Nigeria’s economic trajectory in the coming years. With the country grappling with issues such as inflation, rising debt, and foreign exchange challenges, President Tinubu’s budget proposal will likely address these concerns while also prioritizing long-term economic growth and stability.
The review of the MTEF and FSP by the Senate Committee on Finance is an essential step in ensuring that the national budget is in line with economic realities and government priorities. The process is expected to be rigorous, with lawmakers scrutinizing the assumptions and projections before the final budget is presented.
As President Tinubu prepares to present the N47.9 trillion 2025 budget, all eyes are on the Senate for its response to the proposed fiscal plan. The coming week promises to be a pivotal moment in Nigeria’s economic journey as the government seeks to balance ambitious growth targets with the realities of the global economy.
With the budget presentation fast approaching, the Nigerian people, businesses, and financial markets will be closely watching to see how President Tinubu’s administration plans to navigate the economic challenges ahead, ensuring sustainable development for the country in 2025 and beyond.