President Bola Tinubu has approved the N54.99 trillion 2025 appropriation bill into law.
The President signed the budget in a small ceremony witnessed by principal officers of the National Assembly and other top government officials in his office at the State House in Abuja on Friday.
The Bill gained the approval of the two chambers of the National Assembly on Thursday, 13 February following Tinubu’s request for an increase from the proposed N49.7 trillion.
The appropriation bill approved by the National Assembly marked a 99.96% increase from the 2024 budget of N27.5 trillion. It also surpassed the N54.2 trillion bill initially proposed by President Tinubu.
Tinubu in his request to the National Assembly for the budget to be raised on 5 February, cited additional revenue from key agencies as the reason for the increase. He explained how agencies such as the Nigerian Custom Services and Federal Inland Revenue Services contributed to this budget increase.
Moreover, the budget focuses on key sectors such as security, infrastructure, education, and health, allocating $200 million to offset the effects of recent reductions in U.S. health aid.
Additionally, the 2025 budget depends 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.
Furthermore, the Federal Government projects an exchange rate of ₦1,500 to the U.S. dollar and aims to decrease inflation from 34.8% to 15% by year’s end.
A notable element of the fiscal strategy is a set of tax reforms that, according to Tinubu, will boost revenue generation and promote economic stability.
The proposed overhaul would raise the value-added tax to 12.5% by 2026 while exempting essential items such as food and medicine to ease burden.
In addition, the reforms suggest reallocating VAT revenues to favor states that generate more income—a proposal that has sparked debates over regional economic disparities.
