The Federal Government, through the Minister of Budget and Economic Planning, Abubakar Atiku Bagudu, has described the 2025 budget as ‘bold, ambitious, and essential’ for sustaining economic expansion.
Speaking in Lagos on Monday after the KPMG Budget 2025 Day, Bagudu stated that the economy is progressing in the right direction, and the 2025 budget is designed to reinforce that trajectory. The budget, themed the “Budget of Restoration,” is nearly double the N27.5 trillion allocated in 2024 and aims to secure Nigeria’s future while rebuilding prosperity.
Nigeria’s Gross Domestic Product (GDP) grew by 3.84 percent in real terms in the fourth quarter of 2024, up from 3.46 percent in the same period of 2023. This marks the country’s fastest economic expansion since 2021, driven by significant growth in the services sector and efforts to strengthen food security, according to data from the National Bureau of Statistics (NBS).
“The budget is designed to further stabilise the economy and foster continued growth. We are observing a moderation in inflation, particularly food inflation. Nigeria’s economic reforms are proving effective, and state governments are receiving increased allocations,” Bagudu stated.
He further explained that President Bola Tinubu’s administration is implementing a clear economic strategy that is producing positive results, although challenges remain.
“We are not yet where we want to be as a country, but we are encouraged by the public’s support for the economic redirection. Investors also recognise and appreciate the policy decisions we have taken,” he added.
The 2025 budget, valued at N54.99 trillion, represents Nigeria’s most substantial financial commitment to key sectors. The National Security allocation stands at N6.11 trillion, marking the highest defence budget in the country’s history, aimed at addressing security threats. Infrastructure spending is set at N5.99 trillion, focusing on major rail, road, and energy projects to enhance connectivity and economic expansion.
Human capital development has received an unprecedented N5.70 trillion, dedicated to healthcare, education, and skills development. Additionally, N3.73 trillion has been earmarked for agriculture and food security to increase domestic food production and combat hunger, while N723.68 billion is allocated for social welfare programmes supporting youth, women, and vulnerable citizens.
Further provisions in the budget include N1.5 trillion for the recapitalisation of the Bank of Industry (BOI) and N1 trillion for the Ministry of Solid Minerals to drive industrial growth and diversification.
Capital expenditure has received a significant boost, rising to N23.4 trillion—accounting for 42.6 percent of total spending—compared to N7.72 trillion in 2024, underscoring the government’s focus on infrastructure and economic development.
Recurrent expenditure has been set at N14.2 trillion, reflecting a 20.34 percent increase from the previous year. This rise ensures the sustenance of the national minimum wage, currently at N70,000, which was approved in July 2024.
Debt servicing will require N14.32 trillion, accounting for 26.1 percent of the budget, while the fiscal deficit stands at N9.22 trillion, positioning the deficit-to-GDP ratio at 1.52 percent.
During the budget signing ceremony at the National Assembly, President Tinubu reiterated the government’s commitment to fiscal responsibility, stating, “We cannot spend what we do not have.”
He emphasised that while the budget deficit has been reduced, government expenditure must be backed by actual revenue. “We will not place an undue debt burden on future generations. Instead, we will expand government revenue through efficient reforms and improved earnings,” he stated.
The President further outlined plans to accelerate public-private partnerships (PPP) and attract foreign investments to fund critical projects, ensuring accountability and value for money in public spending.
“This budget is not just about numbers—it represents our determination to build a secure, prosperous, and inclusive Nigeria. With dedication, discipline, and faith, we will revitalise our economy, rebuild our nation, and create a brighter future for all,” Tinubu affirmed.
