Minister of Budget and Economic Planning, Atiku Bagudu, detailed the framework during a briefing in Abuja on Tuesday, November 19.
President Bola Tinubu has submitted the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) to the National Assembly, proposing a record ₦47.9 trillion budget for the 2025 fiscal year.
This marks a 35% increase from the 2024 budget of ₦35.5 trillion.
The budget allocates N9.92 trillion to non-debt recurrent expenditure, ₦7.72 trillion to capital expenditure, and ₦8.25 trillion for debt servicing. Statutory transfers are pegged at ₦1.37 trillion, while the sinking fund stands at ₦243.66 billion.
Minister of Budget and Economic Planning, Atiku Bagudu, detailed the framework during a briefing in Abuja.
“The budget size approved for presentation to the National Assembly is ₦47.9 trillion, including new borrowings of ₦9.2 trillion to finance the deficit. This represents 3.87% of the estimated GDP,” he stated.
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The MTEF projects a 4.6% GDP growth rate, an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of ₦1,400 to the dollar.
“These conservative fiscal objectives aim to ensure stability while accommodating potential growth beyond projections,” Bagudu added.
The government also prioritised market deregulation for petroleum prices and exchange rates. Bagudu emphasised the need for the Nigerian National Petroleum Corporation Limited to lower oil and gas production costs.
He also highlighted possible amendments to the Petroleum Industry Act 2021 to mitigate risks to the Federation.
The proposed budget, once approved by the National Assembly, is expected to underpin key reforms and investments aimed at stimulating economic growth and addressing fiscal challenges.
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