Nigeria’s 2025 Budget: A Commitment to Economic Growth and Prosperity
Nigeria’s 2025 budget amounts to N54.99 trillion, doubling the previous year’s allocation, aimed at economic expansion and prosperity. Growth in GDP has been noted at 3.84 percent, primarily driven by the services sector and food security initiatives. The budget allocates funds for national security, infrastructure, human capital development, agriculture, and social welfare, while emphasizing fiscal responsibility and public-private partnerships for future projects.
Nigeria’s budget for 2025, as articulated by Abubakar Atiku Bagudu, the Minister of Budget and Economic Planning, is characterized as bold and ambitious, designed to foster economic expansion. Following the KPMG Budget 2025 Day in Lagos, Bagudu emphasized that the 2025 budget, referred to as the “Budget of Restoration,” prioritizes securing Nigeria’s future and rebuilding prosperity, doubling the previous year’s budget from N27.5 trillion to N54.99 trillion.
Significant economic growth was evident, with Nigeria’s Gross Domestic Product (GDP) increasing by 3.84 percent year-on-year in the fourth quarter of 2024, a notable rise from 3.46 percent in 2023. This represents the country’s most robust growth in three years, predominantly driven by advancements in the services sector and initiatives aimed at enhancing food security, according to data released by the National Bureau of Statistics (NBS).
The Minister remarked that the budget aims to stabilize the economy and promote further growth, highlighting a decrease in inflation rates, particularly in food inflation. He reassured that the economic reforms undertaken by Nigeria are yielding positive outcomes, reflected by increased state allocations. Bagudu affirmed the government’s belief in its strategy under the leadership of President Bola Tinubu, recognizing the importance of public support for these economic redirections.
The historic budget allocation encompasses significant investments across multiple sectors: National Security (N6.11 trillion), Infrastructure (N5.99 trillion), Human Capital Development (N5.70 trillion), Agriculture and Food Security (N3.73 trillion), and Social Welfare (N723.68 billion). Additionally, the budget comprises N1.5 trillion designated for recapitalizing the Bank of Industry and N1 trillion earmarked for the Ministry of Solid Minerals.
Capital expenditure in the 2025 budget surged to N23.4 trillion, constituting 42.6 percent of total spending, compared to N7.72 trillion in the previous year. The recurrent allocation also increased to N14.2 trillion, marking a 20.34 percent rise. This increase facilitates the service of the national minimum wage of N70,000 established in July of the previous year. Conversely, debt servicing consumes N14.32 trillion, equating to 26.1 percent of the budget, and the fiscal deficit stands at N9.22 trillion, translating to a deficit-to-GDP ratio of 1.52 percent.
Upon signing the budget, President Tinubu emphasized fiscal responsibility, stating, “We cannot spend what we do not have.” He noted the imperative to ensure that expenditures align with actual revenues while avoiding excessive borrowing that could burden future generations. Furthermore, he advocated for enhanced public-private partnerships and foreign investments to facilitate vital project financing.
The President concluded by asserting that the budget represents more than mere figures; it symbolizes a commitment to the security, prosperity, and opportunity for all Nigerians. He expressed confidence in restoring the economy and securing a brighter future through disciplined efforts and collective resolve.
In summary, Nigeria’s 2025 budget, labeled the “Budget of Restoration,” outlines a comprehensive plan for economic growth and stability by allocating substantial investments across critical sectors. With a significant increase in capital expenditure and a focus on various developmental areas, the government aims to secure a prosperous future for its citizens. The commitment to fiscal responsibility and collaboration with private entities further reinforces the budget’s role in driving sustainable development.
Original Source: businessday.ng
