President Bola Ahmed Tinubu, has given priority to defence and security,  infrastructure development, health and education in the 2025 Appropriation Bill of N49.7 trillion presented before a joint session of the National Assembly on Wednesday.

Highlights of the budgetary allocations in those priority areas shwoed that Defence and Security have N4.91 trillio, Infrastructure: N4.06 trillion, Health: N2.48 trillion, and  Education: N3.52 trillion.

This was as Speaker of the House of Representatives, Hon. Tajudeen Abbas, commended the President, saying that the reforms he introduced were in order, and will see Nigeria into economic breakthrough.

“The proposed 2025 budget of N49.7 trillion—a 35% increase over 2024—is really ambitious and commendable”, the Speaker said in his vote of thanks at the joint session.

The President said as his government embarks on implementing the 2025 Budget, its steps will be deliberate, decisions resolute, and priorities clear. “This budget reflects a renewed commitment to strengthening the foundation of a robust economy, while addressing critical sectors essential for the growth and development we envision”, he said.

On the general overview of the budget, President Tinubu explained that “In 2025, we are targeting 34.82 trillion naira in revenue to fund the budget. Government expenditure in the same year is projected to be 47.90 trillion naira, including 15.81 trillion naira for debt servicing.

 
“A total of 13.08 trillion naira, or 3.89 percent of GDP, will make up the budget deficit. This is an ambitious but necessary budget to secure our future. The Budget projects inflation will decline from the current rate of 34.6 percent to 15 percent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira, and a base crude oil production assumption of 2.06 million barrels per day (mbpd)”.

Titled “The Restoration Budget: Securing Peace, Rebuilding Prosperity”, the President said “This 2025 budget proposal lays the foundation for peace, prosperity, and much needed hope. It is the plan through which a Nigeria where every citizen can dream, work, and thrive in safety can be achieved”.

Speaker of the House of Representatives in his remarks, said “the projections of 4.6% GDP growth, a crude oil price of $75 per barrel, an exchange rate of N1,400 to the dollar, and oil production of 2.06 million barrels per day are bold but achievable.

“However, Nigeria’s fiscal realities warrant critical reflection. Despite being Africa’s most populous nation with over 220 million people, our 2024 national budget of $36.7 billion remains modest compared to countries like South Africa, with a budget of $160 billion for its 60 million citizens; Egypt, with $110 billion for 110 million people; Algeria, with $60 billion for 45 million people; and Morocco, allocating $50 billion for its 37 million residents.

“Indeed, Nigeria’s low tax revenue also remains a major constraint. Our tax-to-GDP ratio, currently at approximately 10.9% for 2024, is among the lowest in Africa, significantly below the continental average of 15.6%. In comparison, South Africa’s tax-to-GDP ratio stands at 25.4%, while Rwanda and Ghana, with much smaller populations, report ratios of 15.1% and 14.1%, respectively…

“Mr. President, let me assure you that the National Assembly is fully committed to supporting the successful implementation of the 2025 budget. This is not merely your budget; it is a national project requiring collaboration across all arms of government. We will work to ensure its timely passage, provide legislative support for critical reforms, and conduct robust oversight to guarantee transparency and efficiency in its execution”.