The Federal Executive Council, FEC, on Monday approved the 2025 Budget Proposal.
The Minister of Budget and Economic Planning, Senator Atiku Bagudu, disclosed this while briefing State House correspondents at the end of the cabinet meeting, presided over by President Bola Tinubu at the Council Chamber , Presidential Villa, Abuja.
He said that the 2025 framework was based on oil price benchmark of $75 per barrel. Oil production of 2.06 million barrels per day. Exchange rate of one N1400 to a dollar.
He said, “Today (yesterday) the Federal Executive Council approved the budget proposals for 2025 with amendments which Mr. president directed following a presentation to the Federal Executive Council led by the Director General of the Budget Office, Tanimu Yakubu.
“The 2025 budget proposal articulates the federal government financial plan for the 2025 fiscal year and aligns with the renewed hope agenda and the national development plan, 2021, 2025.
“Earlier, the medium term expenditure framework and fiscal strategy paper was designed to build on the advances in macro economics stability , security gains, infrastructure gains, human capital development effort and creative industries, manufacturing and all the measures that have been taken to expand economic activity, create consumer credit, national agricultural development fund, gas, CNG initiative, housing initiative.
“All of them intended to build economic activity and the the successes noted in 2024
“The 2025 framework is based on a benchmark oil price benchmark of 75 dollar per barrel, oil production of 2.06 million barrels per day and the exchange rate of 1400 naira. All these are already included in the medium term expenditure framework of which we have presented here, which have also been approved by the National Assembly.
“So, the total projected revenue for 2025 stands at N34,820 trillion out of which the expenditure is projected at N47,960 trillion which is an increase of 36.8% from the 2024 estimate, the deficit for 2025 is projected at N13.13 trillion representing 3.89% of GDP.
“If you recall, this administration inherited N6.1 trillion deficit from the 2023 budget. But given the success achieved in 2024 we were still able to maintain the deficit.”
The Minister said that comments were taken from members of the Executive Council and the President directed some consequential adjustment while, approving the figures.
On why the budget proposal presentation to the National Assembly was postponed from the initial date of Tuesday, December 17, 2024 to Wednesday, December 18, 2024, the Minister of Information and National Orientation, Mohammed Idris, explained that the National Assembly was yet to communicate to the executive on the date and time for the presentation.
He said that before budget presentation, the executive usually engages with the leadership of the National Assembly for the suitable time and date and time, adding that the National Assembly would then communicate on the date and time chosen for such an important exercise.
The Minister said that engagements were still ongoing between the two arms of government, expressing optimism that the budget proposal presentation would take place on Wednesday.
