President Bola Tinubu has officially signed the N54.99 trillion ($36.6 billion) 2025 Appropriation Bill into law, marking a significant increase from the initial proposal.
The signing ceremony took place at the State House, Abuja, on Friday, in the presence of top government officials and principal officers of the National Assembly.
Budget Increase And Key Allocations The National Assembly had approved the budget on Thursday, February 13, following Tinubu’s request for an increase from the proposed N49.7 trillion.
The final amount surpassed his revised proposal of N54.2 trillion due to additional anticipated revenues from key agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
This budget aims to drive national development, focusing on security, infrastructure, education, and healthcare. Notably, $200 million has been allocated to cushion the effects of recent U.S. health aid reductions.
Economic Assumptions And Targets The 2025 budget is built on bold economic projections, including:
- Crude Oil Production: 2.06 million barrels per day
- Benchmark Oil Price: $75 per barrel
- Exchange Rate: ₦1,500 to $1
- Inflation Reduction Target: From 34.8% to 15% by year-end
Major Tax Reforms And Revenue Strategies
A core component of the budget is tax reform aimed at boosting revenue and stabilizing the economy. Tinubu’s administration plans to:
- Increase the value-added tax (VAT) to 12.5% by 2026 while exempting essential goods like food and medicine.
- Reallocate VAT revenues in favor of states generating higher revenue, a move that has stirred debates over regional economic disparities.
A Record-Breaking Budget
The 2025 Appropriation Act represents a 99.96% increase from the N27.5 trillion 2024 budget, maybe reflecting the government’s ambitious spending plan to drive economic growth and stability.
