Why Nigeria’s N49.7trn budget is good for economic growth – FirstBank CEO, Alebiosu
By Eberechi Obinagwam
FirstBank, one of Nigeria’s leading financial institutions, has thrown its weight behind the Federal Government’s proposed N49.7 trillion budget for 2025.
Olusegun Alebiosu, FirstBank CEO who was speaking at the bank’s annual Nigeria Economic Outlook event on Wednesday in Lagos, with the theme; Nigeria 2025: Path to Economic Rebound and Recovery, said the budget has the potential to stimulate economic growth and development.
According to him, the government’s proposed budget is a step in the right direction, as it focuses on critical sectors that are essential for economic growth.
He noted that the budget’s emphasis on infrastructure development, human capital, and social welfare programs aligns with its own commitment to supporting Nigeria’s economic development.
He said: “As it is customary with us as a people, new years usually offer us an opportunity to review the past; reset individual and collective expectations and renew our hopes in the dream for a better future. This deep-seated optimism in the face of harsh realities is probably one of the hallmarks of being a “Nigerian” and you will agree with me that at no other time in our recent history has this optimism been seriously tested than in the outgone year 2024!
“Due to the impacts of some of the “painful but necessary” reforms that the Government had pursued, inflationary pressures exerted considerable strain on household and corporate incomes in 2024, with the inflation rate reaching a three-decades high of 34.60% in November 2024. In response, the Central Bank of Nigeria, through its Monetary Policy Committee (MPC), had steadily raised the benchmark Monetary Policy Rate (MPR) to 27.5% in a bid to tame inflationary pressures. The combination of these actions has resulted in significantly higher cost of living/operations and funding for households and corporates.
“Nevertheless, the Nigerian Gross Domestic Products (GDP) grew steadily on a quarter-on-quarter basis in 2024, growing the most by 3.46% in Q3. Similarly, signs have begun to emerge that the reforms pursued by the Government are starting to yield the desired results. For example, the improving Government revenues and fiscal position (as suggested by the better revenue-to-debt service ratio at 68% and the growth in foreign reserve balances to over $40 billion) are indicators that our optimism as a people may not be in vain after all.
“In addition, early signs such as the stability that characterized the foreign exchange market on the back of the introduction of the electronic foreign exchange matching system in December 2024; the emergence of competition on the supply side of our nation’s downstream sector that is leading to falling prices in premium motor spirit (PMS) and the coming back on stream of the Port Harcourt & Warri refineries are indicative that there is, indeed, light at the end of the tunnel for us as a country.
“As a thorough-bred Nigerian myself, the sheer timing of the emergence of these developments has strengthened my optimism about the Nigerian economy, especially coming into the new year 2025. Also, the Government’s proposed NGN49.7 trillion 2025 budget is expected to provide sufficient economic stimulus in view of the lower likelihood for poor budget implementation due to improving Government’s revenue position. Therefore, the projected GDP growth rate of 3.68% for 2025 is a very likely outcome.”
FirstBank’s support for the budget is also based on its expectation that the government’s fiscal policies will help to stimulate economic activity, create jobs, and reduce poverty.
The bank believes that the budget’s implementation will have a positive impact on the overall economy, leading to increased economic growth and development.
As a key player in Nigeria’s financial sector, FirstBank is committed to supporting the government’s efforts to stimulate economic growth.
He also reaffirmed the bank’s commitment to provide innovative products and services to its customers, thereby helping them take advantage of emerging opportunities and navigate the economic landscape.