President Bola Tinubu has presented Nigeria’s 2025 budget proposal, pegged at N49.7 trillion, to the National Assembly. During his speech, he promised to tackle inflation and stabilize the country’s exchange rate. Tinubu expects inflation, which is now at 34.6%, to drop to 15% next year. He also plans to bring the exchange rate down from N1,700 per dollar to N1,500.
He described the budget as a “restoration budget” aimed at fixing the economy and addressing key issues. Defence and security will get N4.91 trillion, infrastructure N4.06 trillion, education N3.5 trillion, and health N2.4 trillion. However, debt servicing takes the largest share, with N15.81 trillion allocated. The government hopes to generate N34.82 trillion in revenue, leaving a budget deficit of N13.08 trillion.
Tinubu explained that the projections rely on certain assumptions, like producing 2.06 million barrels of oil per day, cutting down on petrol imports, exporting more refined products, and improving food production through better security. He also wants to boost foreign investments and lower the cost of oil production.
This announcement comes at a time when Nigerians are struggling with rising living costs. Inflation recently hit 34.6%, and food prices are soaring, with food inflation reaching 39.93% in November. Despite these challenges, Tinubu expressed confidence in his plans, saying, “This budget shows the bold steps we’re taking to rebuild our economy.”
While some experts question the ambitious targets, others believe the budget is a step in the right direction. The National Assembly will now review the proposal in the coming weeks.
