The Federal Executive Council has approved a proposed national budget of ₦50 trillion for the 2025 fiscal year.
The Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this on Thursday while briefing State House correspondents after the FEC meeting presided over by President Bola Tinubu.
This decision is part of the Medium-Term Expenditures Framework (MTEF) for 2025 to 2027 and in compliance with the Fiscal Responsibility Act of 2007.
Bagudu emphasized the conservative nature of the fiscal objectives, aiming for realistic projections while still expecting growth beyond the set targets.
The approved budget, which will be presented to the National Assembly, includes new borrowings of ₦10 trillion to address the anticipated budget deficit.
He noted the importance of maintaining market deregulation of petroleum prices and the exchange rate, urging the Nigerian National Petroleum Corporation Limited to significantly lower production costs.
Bagudu also mentioned the potential need to amend specific sections of the Petroleum Industry Act of 2021 to mitigate risks to national revenue.
Additionally, the Federal Executive Council’s submission to the National Assembly adheres to the mandates of the Fiscal Responsibility Act of 2007, projecting a GDP growth rate of 5.0 percent, an exchange rate of $70 to the naira, and oil production at 2.1 million barrels per day.
During the meeting, discussions included ongoing economic stabilization and tax reform initiatives aimed at fostering substantial growth in 2025.
