Nigeria’s budget for 2025 is bold, ambitious, and necessary to support economic expansion, said Abubakar Atiku Bagudu, minister of budget and economic planning.
Bagudu, who spoke to in Lagos on Monday shortly after KPMG budget 2025 day noted that the economy is moving in the right direction, adding that the 2025 budget is a follow through in that direction.
Tagged a “Budget of Restoration”, the 2025 budget which is double 2024’s N27.5 trillion is aimed at securing Nigeria’s future and rebuilding prosperity, the Minister said.
Nigeria’s Gross Domestic Product (GDP) surged by 3.84 percent in real terms in the fourth quarter of 2024 from 3.46 percent in 2023. The country’s Gross Domestic Product (GDP) which grew by 3.84 percent year-on-year in the fourth quarter of 2024, up from 3.46 percent in the previous quarter, marked the fastest pace of growth since 2021.
The economy recorded its highest growth rate in three years, driven by a robust expansion in the services sector and ongoing efforts to bolster food security, according to the latest data released by the National Bureau of Statistics (NBS).
“The budget is meant to further stabilise the economy and further growth. We are seeing inflation tempering, particularly that of food inflation. Nigeria’s economic reforms are working. States are getting more allocation,” the minister said.
Bagudu said the President Bola Tinubu-led government has a strategy “which we believe in and the strategy is working. We are not where we want to be as a country”.
He said the federal government is happy that Nigerians supported the choices of redirecting the economy for good, “and they have turned positive”. “Investors appreciate the choices we took to reform the economy,” he added.
With an unprecedented N54.99 trillion budget, Nigeria is making the largest-ever investments in critical sectors: National Security (N6.11 trillion) – the highest defence allocation in Nigeria’s history to secure our nation from threats.
Infrastructure (N5.99 trillion) – major rail, road, and energy projects to connect Nigeria’s cities and drive economic expansion. Human Capital Development (N5.70 trillion) – unprecedented funding for healthcare, education, and skills development.
Read also: Nigeria’s GDP grew more than 3% for 3 successive quarters – Bagudu
Agriculture and Food Security (N3.73 trillion) – this will boost local food production and ensure no Nigerian goes hungry. Social Welfare (N723.68 billion) – will support the youth, women, and vulnerable citizens.
In addition, about N1.5trillion is in the budget to recapitalise Bank of Industry (BOI), while N1trillion was budgeted to support ministry of solid minerals.
In the 2025 budget, capital expenditure got a noteworthy boost, rising to N23.4 trillion (42.6 percent of total spending) from N7.72 trillion in 2024, which signals a push for infrastructure and economic investment.
The recurrent allocation of N14.2 trillion in 2025 is 20.34 percent increase from 2024 budget. This increase benefits public sector workers as it services the current national minimum wage of N70,000, which was approved last year July.
Meanwhile, debt servicing takes about N14.32 trillion (26.1 percent of the budget), while the fiscal deficit stands at N9.22 trillion, pegging the deficit-to-GDP ratio at 1.52 percent.
President Tinubu had during the signing of the budget at the national assembly noted that, “We cannot spend what we do not have”.
“While we have significantly reduced the deficit, we must ensure that we back every naira spent with actual revenue. “We will not burden future generations with reckless borrowing. Instead, we will: expand government revenues through efficient reforms and enhanced earnings”.
He also noted that government will accelerate public-private partnerships (PPP) and foreign investments to finance key projects.
“Hold every agency accountable for prudent spending and value-for-money initiatives.”
“This budget is more than figures—it is a statement of purpose. It is a commitment to security, prosperity, and opportunity for all.
“With hard work, discipline, and faith, we will restore our economy, rebuild our nation, and secure a brighter future for every Nigerian,” President Tinubu noted.
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