Tinubu pens ₦54.99trn 2025 budget into law
By Jeffrey Agbo
President Bola Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law.
The signing took place on Friday at the State House, Abuja, in the presence of key government officials and principal officers of the National Assembly. This follows the bill’s approval by both chambers of the National Assembly on February 13 after Tinubu requested an increase from the initial ₦49.7 trillion proposal.
The National Assembly ultimately approved a budget of ₦54.99 trillion ($36.6 billion), surpassing Tinubu’s revised proposal of ₦54.2 trillion. The increase reflects additional projected revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
The budget prioritises critical sectors, including security, infrastructure, education and healthcare, with $200 million allocated to mitigate the effects of recent US health aid reductions.
READ MORE: Tinubu increases 2025 budget from N49.7tr to N54.2tr
The 2025 fiscal plan is built on ambitious economic projections including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel, an exchange rate projection of ₦1,500 per U.S. dollar, and a goal to reduce inflation from 34.8% to 15% within the year.
A key component of the budget is a proposed tax reform strategy aimed at boosting revenue and ensuring economic stability.
The reforms include increasing the value-added tax (VAT) to 12.5% by 2026 while exempting essential goods such as food and medicine and reallocating VAT revenues to favour states that generate more, a move sparking debates over regional economic disparities.
The 2025 budget represents a 99.96% increase from the ₦27.5 trillion budget of 2024, underscoring the government’s expansionary fiscal approach.
