Toba Owojaiye
Abuja, Nigeria
On Wednesday, President Bola Ahmed Tinubu presented the 2025 Appropriation Bill to a joint session of the National Assembly, outlining a financial roadmap aimed at stabilizing the economy, restoring confidence, and fostering inclusive growth.
Themed “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” the proposed budget addresses key issues such as security, education, infrastructure, and agriculture, while also aiming to combat inflation and improve living standards.
Below are the major highlights of the 2025 budget and their potential implications:
An Ambitious Fiscal Outlook
The budget projects revenue of ₦34.82 trillion against an expenditure of ₦47.90 trillion, resulting in a deficit of ₦13.08 trillion (3.89% of GDP). Tinubu emphasized that this deficit, though significant, is a necessary investment to rebuild the nation.
The proposed expenditure includes ₦15.81 trillion earmarked for debt servicing, a figure that highlights Nigeria’s fiscal challenges but also underlines the government’s commitment to honor financial obligations.
Macro-Economic Targets: Recovery and Stability
Tinubu cited positive economic indicators, including a GDP growth rate of 3.46% in Q3 2024 and a trade surplus of ₦5.8 trillion. The administration’s reforms have bolstered foreign reserves, now at $42 billion, offering a buffer against global economic shocks.
Projections for 2025 include a reduction in inflation from 34.6% to 15% and an improved naira-dollar exchange rate from ₦1,700 to ₦1,500 per dollar. These goals, if achieved, could significantly ease the burden on households and businesses.
Defense and Security: A Top Priority
With ₦4.91 trillion allocated, the budget places a strong emphasis on tackling insecurity, which remains a significant obstacle to economic growth and social stability. The funds will support military operations, intelligence gathering, and procurement of advanced equipment.
Infrastructure Development for National Transformation
The Renewed Hope Infrastructure Development Fund will drive projects such as the Lagos-Calabar Coastal Highway and the Sokoto-Badagry Highway. A total of ₦4.06 trillion is allocated for infrastructure, signaling a commitment to improving transportation networks, energy systems, and public works.
Human Capital Development: A Core Focus
The education and health sectors received substantial allocations, with ₦3.52 trillion and ₦2.48 trillion, respectively. Notable initiatives include:
Education: ₦826.90 billion for new institutions and infrastructure.
Health: ₦402 billion for healthcare facilities and ₦282.65 billion for the Basic Health Care Fund, aimed at expanding universal health coverage.
Revitalizing Agriculture for Food Security
Acknowledging the sector’s potential to drive growth and reduce hunger, Tinubu unveiled measures to support farmers with funding, equipment, and inputs. The government aims to reduce reliance on food imports while ensuring that no Nigerian goes to bed hungry.
Fiscal Discipline and Economic Reform
Tinubu reiterated the administration’s resolve to restore macroeconomic stability and foster equitable wealth distribution. The reforms initiated over the past 18 months have begun yielding results, such as increased non-oil revenue and improved tax collection.
“Our reforms are bearing fruit, and Nigerians will soon witness a more functional economy,” the President affirmed.
A Call for Unity and Shared Responsibility
Tinubu urged Nigerians, leaders, and institutions to work together in overcoming challenges such as corruption, insecurity, and economic disparities. “We must summon the unstoppable Nigerian spirit to rebuild our economy and society,” he said.
Challenges and Public Sentiment
While the 2025 budget outlines a bold vision, achieving its targets will require overcoming significant hurdles. Persistent inflation, high unemployment, and a rising debt profile could undermine the proposed initiatives.
Public sentiment is likely to hinge on how quickly Nigerians feel the impact of these reforms. While the government’s focus on infrastructure and human capital is commendable, the real test will be in execution and accountability.
The 2025 budget reflects President Tinubu’s resolve to address Nigeria’s pressing challenges head-on. Its ambitious allocations and macroeconomic targets suggest a government willing to make tough decisions for long-term gains. However, its success will depend on efficient implementation, political will, and public buy-in.
If managed effectively, the budget could mark a turning point in Nigeria’s journey toward economic recovery and national prosperity. However, the government must tread carefully, balancing ambition with realism to ensure the benefits reach all Nigerians.