In a significant move, President Bola Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law, marking a 99.96% increase from the 2024 budget of ₦27.5 trillion.¹ The signing ceremony took place at the State House in Abuja, with principal officers of the National Assembly and top government officials in attendance.
The National Assembly passed the bill on February 13, after President Tinubu requested an increase from the initial proposed ₦49.7 trillion. The approved budget surpasses Tinubu’s initial proposal of ₦54.2 trillion, reflecting additional anticipated revenues from agencies like the Federal Inland Revenue Service and the Nigeria Customs Service.
The 2025 budget focuses on key areas, including:
– Security: Allocation of funds to enhance national security
– Infrastructure: Investment in critical infrastructure projects
– Education: Funding for educational initiatives and institutions
– Health: Allocation of $200 million to mitigate the impact of recent U.S. health aid reductions
The budget is based on ambitious economic assumptions, including:
– Crude oil production target: 2.06 million barrels per day at a benchmark price of $75 per barrel
– Exchange rate: ₦1,500 to the U.S. dollar
– Inflation reduction: Aim to reduce inflation from 34.8% to 15% within the year
A significant component of the fiscal strategy involves tax reforms, which Tinubu says are designed to enhance revenue generation and economic stability. The proposed tax overhaul includes increasing the value-added tax to 12.5% by 2026, while exempting essential goods like food and medicine to alleviate the burden on households.
