Nigeria’s 2025 budget of N54.99 trillion supports economic growth and stability, characterized by significant allocations for national security, infrastructure, and human capital development. With cautious financial management emphasizing revenue generation and accountability, the government aims for sustained progress and prosperity for its citizens.
Nigeria’s 2025 budget, amounting to N54.99 trillion, is labeled as a “Budget of Restoration” and is designed to support and spur economic expansion, according to Abubakar Atiku Bagudu, the Minister of Budget and Economic Planning. He emphasized that the ambitious budget reflects a continuation of efforts toward economic stability and growth during remarks made in Lagos after KPMG’s Budget 2025 event.
The proposed budget represents a substantial increase over 2024’s N27.5 trillion allocation, signifying Nigeria’s commitment to securing its economic future and promoting prosperity. According to recent data from the National Bureau of Statistics, Nigeria’s GDP grew by 3.84 percent in the fourth quarter of 2024, reflecting the fastest growth rate since 2021, attributed to expansion in the services sector and initiatives aimed at enhancing food security.
Minister Bagudu stated, “The budget is meant to further stabilise the economy and further growth. We are seeing inflation tempering, particularly that of food inflation.” He conveyed optimism about the effectiveness of ongoing economic reforms and acknowledged rising allocations for states, indicative of the government’s support in these efforts.
With the historical allocation for national security set at N6.11 trillion, the budget prioritizes safeguarding the nation. Significant investments include N5.99 trillion for infrastructure, N5.70 trillion for human capital development, and N3.73 trillion for agriculture and food security, highlighting crucial areas for national investment.
Additionally, the budget proposes N1.5 trillion for the recapitalization of the Bank of Industry and N1 trillion for the Ministry of Solid Minerals, marking extensive support for industrial growth. Capital expenditure is poised to rise dramatically, reaching N23.4 trillion, accounting for 42.6 percent of total spending, reflecting a vigorous push for infrastructure investment.
Furthermore, the recurrent allocation of N14.2 trillion represents a 20.34 percent increase over the previous year, aimed at benefiting public sector workers and servicing the national minimum wage established last year. However, debt servicing will absorb roughly N14.32 trillion, contributing to a fiscal deficit of N9.22 trillion.
President Bola Tinubu emphasized responsible fiscal practices during the budget signing, stating, “We cannot spend what we do not have.” He committed to expanding revenues through reforms while ensuring accountability for expenditures with a focus on value-for-money initiatives. In conclusion, the president described the budget as a “statement of purpose” to foster security, prosperity, and opportunity, urging citizenship commitment to the restoration of the economy and future prosperity.
The 2025 budget of N54.99 trillion, spearheaded by the Nigerian government, is a bold initiative aimed at bolstering economic growth and stability. By prioritizing security, infrastructure, and social welfare, the government seeks to enhance the quality of life for its citizens while maintaining fiscal responsibility. Through strategic investments and a commitment to reform, Nigeria is poised for significant advancements in its economic landscape toward a prosperous future.
Original Source: businessday.ng
