President Bola Tinubu has presented a N49.7 trillion budget proposal for the 2024 financial year to a joint session of the National Assembly.
The budget, entitled “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” outlines the government’s financial plan for the coming year.
The budget projects revenue at N34.82 trillion, with N15.81 trillion allocated for debt servicing. A deficit of N13.08 trillion—equivalent to 3.89 per cent of GDP—will be financed through internal and external borrowings.
Key assumptions underlying the budget include an oil price benchmark of $75 per barrel, crude oil production of 2.06 million barrels per day (mbd), a GDP growth rate of 4.6%, an exchange rate of N1,500/$, and an inflation rate of 15%.
While addressing the joint session of the House of Representatives and the Senate on Wednesday, Tinubu explained that these projections are based on reduced petroleum imports, increased export of refined petroleum products, enhanced security supporting bumper harvests, reduced reliance on food imports, and higher foreign exchange inflows via foreign portfolio investments.
The president revealed that defence and security received N4.91 trillion, infrastructure N4.06 trillion, health N2.48 trillion, and education N3.52 trillion, totalling N14.97 trillion.
“As we embark on implementing the 2025 Budget, our steps are deliberate, our decisions resolute, and our 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.
“Security is the foundation of all progress. We have significantly increased funding for the military, paramilitary, and police forces to secure the nation, protect our borders, and consolidate government control over every inch of our national territory. The government will continue to provide our security forces with the modern tools and technology they need to keep us safe. Boosting the morale of our men and women in the armed forces remains a top priority.
“Our administration will empower the officers, men, and women of the Armed Forces and the Nigerian Police Force to defeat insurgency, banditry, and all threats to our sovereignty. Our people should never live in fear—whether on their farmlands, highways, or in cities. By restoring peace, we restore productivity, revive businesses, and rebuild our communities.
“When we launched the Renewed Hope Infrastructure Development Fund, it was with the conviction that infrastructure remains the backbone of every thriving economy. Under this programme, we are accelerating investments in energy, transport, and public works. By leveraging private capital, we aim to complete key projects that drive growth and create jobs.
“We have already embarked on major projects like the Lagos-Calabar Coastal Highway and Sokoto-Badagry Highway, which will significantly impact the lives of our people and accelerate economic output,” Tinubu said.
In the educational sector, N826.90 billion has been allocated for infrastructure development, including Universal Basic Education (UBEC) and nine newly established higher educational institutions.
For the health sector, the 2025 budget provides N402 billion for infrastructure investments and an additional N282.65 billion for the Basic Health Care Fund, in line with universal health coverage initiatives.
Tinubu emphasised that boosting agricultural productivity is a central part of his administration’s food security agenda. Despite challenges posed by insecurity, the government is supporting farmers with funding and inputs to reignite productivity, declaring food security as non-negotiable.
The president urged lawmakers and Nigerians to collaborate in tackling the nation’s challenges, declaring that the era of lamentation is over.
“Our nation faces existential threats from corruption and insecurity and suffers from the consequences of many poor choices in the past. These challenges are surmountable when we work together to overcome them. We must rewrite this nation’s narrative, with every leader, institution, and citizen playing their part.
“The time for lamentation is over. This is the time to act—a time to support and promote greater investment in the private sector, to faithfully execute policies and programmes, and for every Nigerian to look forward with hope to a brighter future because a new day has dawned for us as a nation,” he added.
The Speaker of the House of Representatives, Hon. Abbas Tajudeen, described the proposed 2025 budget of N47.9 trillion—a 35% increase over that of 2024—as ambitious and commendable.
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He assured Tinubu of the National Assembly’s commitment to ensuring its successful implementation through prompt passage.
Abbas observed that 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 mbd were bold but achievable.
He noted that despite being Africa’s most populous nation with over 220 million people, Nigeria’s 2024 national budget of $36.7 billion remains modest compared to South Africa’s $160 billion for 60 million citizens, Egypt’s $110 billion for 110 million people, Algeria’s $60 billion for 45 million people, and Morocco’s $50 billion for 37 million people.
“Our tax-to-GDP ratio, at approximately 10.9% for 2024, is among the lowest in Africa and significantly below the continental average of 15.6%. South Africa’s tax-to-GDP ratio is 25.4%, while Rwanda and Ghana report 15.1% and 14.1%, respectively.
“Even our VAT collection efficiency—at approximately 20%—is far below the near 70% efficiency achieved by South Africa, Equatorial Guinea, and Zambia. Addressing these challenges requires urgent tax reforms to broaden our tax base, improve compliance, and streamline administration while reducing reliance on borrowing,” he said.
Abbas assure Tinubu that the National Assembly would support the successful implementation of the 2025 budget.
We Will Not Kill Tax Reform Bills – NASS
Extends implementation component of 2024 Budget to June 2025
The National Assembly declared on Wednesday in Abuja that it will not discard the Tax Reform Bills submitted for consideration and passage by President Bola Tinubu in October.
Rather than opposing the bills, the Assembly committed to engaging Nigerians who hold misconceptions about the proposals, with the aim of changing their perceptions and facilitating the bills’ passage.
The assurance regarding the Tax Reform Bills—comprising the Joint Revenue Board of Nigeria (Establishment) Bill, 2024 Nigeria Revenue Service (Establishment) Bill, 2024; Nigeria Tax Administration Bill, 2024; and Nigeria Tax Bill, 2024—came from Senate President Godswill Akpabio and Speaker of the House of Representatives, Hon. Tajudeen Abbas, during President Tinubu’s presentation of the 2025 budget.
In his opening remarks, Akpabio lauded the President’s tax reform initiatives, saying they represent a monumental shift in the country’s fiscal landscape.
He said: “It is disheartening that those who have not taken the time to understand these bills are often the loudest critics.
“I urge all Nigerians, especially those in public office, to thoughtfully engage with these vital reforms. This marks the first comprehensive tax reform since Nigeria’s independence, offering a transformative opportunity to rejuvenate small and medium enterprises and improve the livelihoods of ordinary Nigerians.
“These reforms will enhance Nigeria’s revenue profile and create a more competitive business environment internationally, transforming our tax system to support sustainable development. We will not kill any reform you have forwarded to us for consideration, Mr. President, but will instead engage Nigerians to see its merits.”
In his own remarks, Speaker Abbas assured the President of the National Assembly’s commitment to supporting the reform agenda.
“NASS is fully committed to supporting the 2025 budget, which has just been laid before us today, as well as other initiatives forwarded to us for consideration and passage,” he said.
Extension of 2024 Budget Implementation
Following President Tinubu’s presentation of the 2025 budget, both chambers of the National Assembly moved to extend the capital component of the 2024 budget to June 30, 2025. Legislative action was initiated by listing a bill for this purpose in their Order Paper, which passed its first and second readings in the Senate on Wednesday.
2025 Budget: PDP Urges NASS to Protect Nigerians, Rejig Provisions
Meanwhile, the Peoples Democratic Party (PDP) has described the N47.9 trillion 2025 federal budget presented by President Bola Tinubu as “anti-people,” warning that its implementation would exacerbate insecurity, poverty, and hopelessness in the nation.
The PDP urged the National Assembly to reject the proposed budget and instead use its legislative powers under Sections 80, 81, and 82 of the 1999 Constitution to revise it, ensuring it includes provisions critical to economic growth and the welfare of Nigerians.
In a statement by its national publicity secretary, Hon. Debo Ologunagba, the PDP criticized the budget for failing to allocate meaningful investments to the real drivers of the economy: agriculture, food production, electricity, petroleum, and Small and Medium Scale Enterprises (SMEs).
The party labelled the budget speech as “campaign rhetoric,” accusing it of containing false promises and exaggerated performance claims without actionable mechanisms to address key issues such as insecurity, unemployment, and economic revitalisation.
“The 2025 budget dashed the hopes of millions of suffering Nigerians who expected strategic provisions to reduce the costs of fuel, food, and electricity, among other essentials directly impacting their lives,” the statement read.
The PDP also questioned the credibility of Tinubu’s claim that the 2024 budget achieved an 85% performance rate, criticizing the lack of a detailed breakdown between recurrent and capital expenditures.
Analysts Call 15% Inflation Projection Overly Optimistic
Economic analysts have described the 15% inflation rate and N1,500/$ exchange rate projected in the 2025 budget as overly ambitious, given unresolved structural issues.
Johnson Chukwu, managing director of Cowry Assets Management, noted that the factors driving inflation—such as exchange rate pass-through and food insecurity—remain unaddressed. He warned that without concrete plans to tackle food production challenges, the 15% inflation target is unrealistic.
Similarly, Ayokunle Olubunmi, head of financial institutions ratings at Agusto & Co., said the budget’s spending plans would exacerbate inflationary pressures, making the government’s targets difficult to achieve.
Olubunmi also expressed concerns about Nigeria’s debt servicing obligations, cautioning that they may exceed the N15.81 trillion allocated, particularly as naira devaluation persists and revenue from taxes falls short of projections.
