- ‘Economic recovery in sight as foreign reserves hit $40bn, trade surplus at ₦5.8trn’
- Revenue collection hits 75% of target in 2024
- 2025 budget unrealistic, anti-people — PDP
President Bola Tinubu on Wednesday presented the N47.9 trillion 2025 budget proposal before the joint session of the National Assembly with the Federal Government proposing the sum of N4.91 trillion for the defence and security sector in the fiscal year
The Defence and Security is closely followed by infrastructure with the sum of N4.06 trillion proposed, while the sum of N2.48 trillion is allocated for the Health sector and the sum of N3.52 trillion was earmarked for the Education sector.
President Tinubu noted that the budget christened, “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” strikes at the very core of his Renewed Hope Agenda and demonstrated his government’s commitment to stabilising the economy, improving lives, and repositioning the country for greater performance.
The President added that the 2025 budget proposal again reinforces his administration’s roadmap to secure peace, prosperity, and hope for a greater future for our beloved nation.
He explained that the journey of economic renewal and institutional development, which commenced 18 months ago as a nation, was very much underway.
Tinubu noted that while it wasn’t a journey the country chose, his government had to embark on it for Nigeria to have a real chance at greatness.
He said, “The road of reforms is now clearly upon us, and as the President of this blessed nation, I know this less-travelled road has not been easy, that there have been difficulties and sacrifices. They will not be in vain. And we must keep faith with the process to arrive at our collectively desired destination.
“We must build on the progress we have made in the past eighteen months in restructuring our economy and ensuring it is strong enough to withstand the headwinds of any future shocks of the global downturn.”
The President assured that the 2025 budget was one of restoration, saying it sought to consolidate the key policies his government has instituted to restructure the economy, boost human capital development, increase the volume of trade and investments, bolster oil and gas production, get manufacturing sector humming again and ultimately increase the competitiveness of our economy.
Tinubu stressed that his government does not intend to depart from this critical path to strengthen the Nigerian economy, saying just as he believes in the resilience of the economy to withstand the current challenges.
He emphasised that the objective of his government was to further stimulate the economy through the implementation of targeted fiscal stimulus packages through public expenditures and specific non-inflationary spending.
The President said the reforms his government instituted are beginning to yield results, adding that Nigerians would soon experience a better and more functional economy.
He noted, “Global economic growth for the outgoing year 2024 was projected at 3.2 percent, and against predictions, our country made significant progress.
“Our economy grew by 3.46 percent in the third quarter of 2024, up from 2.54 percent in the third quarter of 2023. Our Foreign Reserves now stand at nearly $42 billion, providing a robust buffer against external shocks.
“Our rising exports are reflected in the current trade surplus, which now stands at N5.8 trillion, according to the National Bureau of Statistics.”
These, Tinubu pointed out, are clear results of gradual recovery, among others, reflect the resilience of our economy and the impact of deliberate policy choices we made from the outset.
On 2024 budget performance, the President informed the National Assembly that his administration attained remarkable milestones, noting that they achieved N14.55 trillion in revenue, meeting 75 per cent of the target as of the third quarter.
He said his government achieved N21.60 trillion in expenditure, representing 85 per cent of its target in the third quarter.
Tinubu stressed that while challenges persist, they have improved revenue collection and fulfilled key obligations, saying the transformational effects of this on our economy are gradually being felt.
He explained that the budgetary allocations in the 2025 budget reflect the administration’s strategic priorities, especially in the implementation of the Renewed Hope Agenda and its developmental objectives.
The President further said that in 2025, his government is targeting N34.82 trillion in revenue to fund the budget, while government expenditure in the same year is projected to be N47.90 trillion, including N15.81 trillion for debt servicing.
He added that a total of N13.08 trillion or 3.89 per cent of GDP would make up the budget deficit.
Tinubu noted that the budget projects inflation would decline from the current rate of 34.6 percent to 15 percent next year, while the exchange rate would improve from approximately N1, 700 per US dollar to N1, 500, and a base crude oil production assumption of 2.06 million barrels per day.
He stated, “Our budgetary allocations underscore this administration’s strategic priorities, particularly in advancing the Renewed Hope Agenda and achieving its developmental objectives.
“Highlights of the 2025 Budget Allocations: Defence and Security: N4.91 trillion; Infrastructure: N4.06 trillion; Health: N2.48 trillion; Education: N3.52 trillion
“Security is the foundation of all progress. We have significantly increased funding for the military, paramilitary, and police forces to secure the nation, protect our borders, and consolidate government control over every inch of our national territory.
“The government will continue to provide our security forces with the modern tools and technology they need to keep us safe. Boosting the morale of our men and women in the armed forces will remain our government’s top priority.
“When we launched the Renewed Hope Infrastructure Development Fund, it was with the conviction that infrastructure remains the backbone of every thriving economy. Under this programme, we are accelerating investments in energy, transport, and public works.
“By leveraging private capital, we hope to complete key projects that drive growth and create jobs. We have already embarked on key legacy projects: Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway, which will have a huge impact on the lives of our people and accelerate economic output.”
The President further said that his administration has so far disbursed N34 billion to over 300,000 students via the Nigeria Education Loan Fund.
He added, “In the 2025 budget, we have made provision for N826.90 billion for infrastructure development in the educational sector. This provision also includes those for Universal Basic Education and the nine new higher educational institutions.
“We are convinced that Universal Health Coverage initiatives will strengthen primary healthcare systems across Nigeria. In this way, we have allocated N402 billion for infrastructure investments in the health sector in the 2025 Budget and another 282.65 billion naira for the Basic Health Care Fund.
“Our hospitals will be revitalised with medication and better resources, ensuring quality care for all Nigerians. This is consistent with the Federal Government’s planned procurement of essential drugs for distribution to public healthcare facilities nationwide, improving healthcare access and reducing medical import dependency.”
The President said the government would be supporting farmers with funding and inputs to reignite productivity, saying food security is non-negotiable.
He said, “Our nation faces existential threats from corruption and insecurity and suffers from many past poor choices. These challenges are surmountable when we work collaboratively to overcome them. We must rewrite the narrative of this nation together, with every leader, institution, and citizen playing their part.”
2025 budget unrealistic, anti-people — PDP
However, the People’s Democratic Party has dismissed the N47.9 trillion 2025 federal budget proposal presented by President Tinubu as “unrealistic, opaque, and insincere.”
In a statement issued on Wednesday by the PDP National Publicity Secretary, Debo Ologunagba, the party described the budget as anti-people, warning that its implementation would worsen insecurity, poverty, and despair across the nation.
The PDP criticized the budget presentation, alleging it was riddled with unverified economic figures and empty campaign promises.
“The N47.9 trillion 2025 federal budget is an anti-people proposal that, if implemented, will plunge the nation deeper into insecurity, poverty, and hopelessness,” the statement read.
The party accused the Tinubu-led administration of failing to make meaningful investments in critical sectors such as agriculture, electricity, petroleum, and small and medium-scale enterprises. These sectors, it argued, are essential for economic growth and stability.
The PDP further lambasted the budget’s lack of clarity, particularly on capital and recurrent expenditure details.
“The budget address was more of campaign rhetoric, filled with unsubstantiated economic statistics, false promises, and conjured performance claims. It lacked clear strategies to address insecurity, revive the economy, create jobs, and reduce the cost of living,” the statement continued.
The party expressed dismay over the President’s claim of an 85% performance rate for the 2024 budget without a breakdown between capital and recurrent expenditures.
The PDP also described as “ludicrous” Tinubu’s assertion that the 2025 budget would reduce inflation from 34.6% to 15% and improve the Naira’s exchange rate from N1,700 to N1,500 per dollar.
“With a staggering N134.3 trillion debt and no tangible investment in the productive sector, these projections are nothing more than voodoo economics,” the PDP said.
The party warned that the projected N13 trillion budget deficits and heavy reliance on taxes would further burden already impoverished citizens and businesses, shrinking the economy and deterring both domestic and foreign investment.
The PDP urged the National Assembly to reject the 2025 budget in its current form, invoking its constitutional powers to restructure the proposal to prioritise economic growth and citizens’ welfare.
“The National Assembly must ensure that the budget reflects the real needs of Nigerians by making provisions that are critical and pivotal to economic recovery and social stability,” the statement stated.
