..Revenue of N34.820trn, deficit of N13.13trn
The Federal Executive Council (FEC) has approved the 2025 budget totalling N47.96 trillion. The budget is scheduled for presentation to the National Assembly on Wednesday.
Mohammed Idris, minister of information and national orientation, while briefing State House journalists after the meeting presided over by President Bola Tinubu, said the Presidency was engaging with the National Assembly to approve the budget submission on Wednesday.
BusinessDay checks show that the meeting also discussed the 2024 budget performance.
The FEC also approved oil production of 2.06 million barrels per day on the back of significant gains in security to support domestic production.
There is a capital component of 33 percent, amongst the other assumptions.
Recall that the 2025 budget was approved on November 14 by the FEC, subject to the passage of the 2025-2027 Midterm Economic Framework (MTEF/FSP) by the lawmakers.
Atiku Bagudu, minister of budget and economic planning, confirmed that all the grey areas have been addressed, noting that the President is now set to lay the budget before the National Assembly for consideration and passage within the next 48 hours.
He disclosed that the 2025 budget has a revenue projection of N34.820 trillion, expenditures of N47.960 trillion.
He also revealed that under the 2024 budget, the federal government had a revenue of N14.55 trillion or 75 percent performance in revenue as at September, 2024, with the hope that it would do better by the end of the year.
Bagudu earlier gave a breakdown of MTEF for 2025 to 2027 in line with the Fiscal Responsibility Act of 2007, which has since been passed by the National Assembly.
In line with the 2007 fiscal Responsibility Act, the framework projected Gross Domestic Product GDP growth rate of 4.6 percent and crude oil price of $75 per barrel, as well as an exchange rate of N1400/$ and oil production of 2.06 million barrels per day.
BusinessDay also gathered that the budget was delayed to allow the National Assembly complete its work on the MTEF/ FSP.
Read also: Tinubu to present 2025 budget to National Assembly Tuesday
In approving Tinubu’s MTEF/FSP, the Senate projected oil benchmark prices at $75, $76.2 and $75.3 per barrel for 2025, 2026 and 2027 respectively.
The Senate also approved an exchange rate of N1,400/$ for 2025, 2026 and 2027 respectively.
The Senate likewise approved crude oil production of 2.06 million bpd, 2.10 million bpd and 2.35 million bpd for 2025, 2026 and 2027, respectively.
The upper legislative chamber also approved a projected GDP at a growth rates of 4.6 per cent, 4.4 per cent, and 5.5 per cent for 2025, 2026 and 2027, with projected inflation rates 15.75 percent, 14.21 percent, and 10.04 percent for 2025, 2026 and 2027 respectively.
The 2024 budget of ‘Renewed Hope,’ as presented by President Bola Tinubu, had a total expenditure of N27.5 trillion (equivalent to $36.7 billion), with a projected revenue of N18.32 trillion ($24.4 billion) and a deficit of N9.18 trillion ($12.2 billion).
To achieve the projected revenue, the federal government had also estimated oil revenue at N7.68 trillion, with Government Owned Enterprises tasked with the responsibility of contributing N4.07 trillion.
In the 2024 budget, non-oil taxes were projected to contribute N3.52 trillion, while independent revenue was set at N1.91 trillion. Minerals and mining accounted for N4.55 billion, while other revenue sources were estimated at N1.13 trillion.
A further breakdown showed that the expenditure breakdown comprised a non-debt recurrent expenditure of N9.92 trillion, a capital expenditure of N7.72 trillion (exclusive of transfers), debt service of N8.25 trillion, a statutory transfer of N1.37 trillion, and a sinking fund of N243.66 billion.
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