Victor EzejaPresident Bola Ahmed Tinubu has stated that economic reforms embarked upon by his administration in the last 18 months are beginning to yield fruits.
Tinubu made the claim while presenting the proposed budget of ₦47.96 trillion for the 2025 fiscal year. He made the budget presentation at a joint session of the National Assembly on Wednesday.
Join our WhatsApp ChannelThe president, who arrived the House of Representatives chamber at around 12:20 pm, assured Nigerians of a better and stronger economy in years to come.
He said the 2025 budget seeks to consolidate the key policies that his administration has instituted to restructure the economy, boost human capital development, increase the volume of trade and investment, bolster oil and gas production and revamp the manufacturing sector and ultimately increase the competitiveness of the country and the economy.
He said: “I report today that our economy is responding positively to stimulus. Our objective is to further stimulate the economy through the implementation of targeted fiscal stimulus packages, public expenditure, and specific non-inflationary spending. The reforms we have instituted are beginning to yield results, with no reversals,” Tinubu stated.
“Nigerians will soon experience a better and more functional economy,” he assured.
He noted that the global economy in 2024 was projected at 3.2 per cent but against predictions, the country has made significant progress.
“Our economy grew by 3.46 per cent, that is 3.5 per cent in the year 2024, up from 2.54 per cent in the third quarter of year 2023,” he stated.
The president remarked that the improvements achieved in the 2024 budget have laid the groundwork for the 2025 budget.
He further stated that the country’s foreign reserves now stand at 42 billion US dollars from negative numbers inherited by his administration, thereby providing a robust buffer against international shocks.
The president also hinted that the country’s exports are rising as reflected in the current trade surplus which now stands at N5.8 trillion.
The president informed the National Assembly that his administration has attained a remarkable milestone in implementing the 2024 budget. “In 2024, we achieved 14.55 billion naira in revenue, meeting 75 per cent of our target as of the third quarter, 21.60 trillion naira in expenditure, representing 85 per cent of our target, also within the third quarter.
“While challenges persist, we improved revenue collection and fulfilled key obligations. The transformational effect of this on our economy are gradually being felt. That drives me to the philosophy of the 2025 budget.”
READ ALSO: FEC Approves N47.960trn 2025 Budget Proposal
He said the 2025 budget seeks to restore microeconomic stability, enhance the business environment, foster inclusive growth, employment, and poverty reduction, promote equitable income distribution and human capital allocation.
“This budget allocation reflects the administration’s strategic priorities, especially and the implementation of the renewed hope agenda and its developmental objectives.”
2025 Budget Highlights
For the budget proposed to be 47.96 trillion, the president said his government is targeting N34 .8 trillion in revenue to fund it. He also disclosed that debt servicing is projected to gulp N15.81 trillion and promised that the debt servicing cost will be reduced. He said a total of 13.0 trillion naira or 3.89 per cent of the GDP will make up the budget deficit.
The budget projects that inflation will decline to 15 per cent next year from the current rate of 34.6 per cent; exchange rate to drop the current N1,700 per dollar to N1500. The budget also projected 2.06 million barrels per day of crude oil production.
The President explained that the projections are based some observations which include: reduced importation of petroleum products, alongside increased export of finished petroleum products; bumper harvest, reducing reliance on food imports; and increasing foreign exchange inflows through foreign portfolio investments among others.
According to President Tinubu, the major highlights of the 2025 budget allocations include: defence and security, N4.91 trillion; infrastructure, N4.06 trillion; health, N2.48 trillion; education, N3.5 trillion.
Victor Ezeja is a passionate journalist with six years of experience writing on economy, politics and energy. He holds a Masters degree in Mass Communication.
