The Presidency, through the Federal Executive Council (FEC) on Thursday approved a proposed budget of N47.9 trillion for the year 2025. This is to be forwarded to the National Assembly for passage into law.
Minister of Budget and Economic Planning, Atiku Bagudu, announced the approval whilebriefing State House Correspondents on the outcome of the FEC meeting presided over by President Bola Tinubu at the Aso Rock Villa, Abuja.
The approval is part of the “Medium Term Expenditure Framework (MTEF) for 2025-2027, in line with the Fiscal Responsibility Act of 2007, Bagudu noted.
He explained that FEC pegged the price of crude oil at $75 exchange rate of N1,400 to $1$ and oil production of 2.06million barrels per day, to arrive at the approved budgetary projections.
The Minister stated that with the growth rate of 3.19% which comes in the second quarter of 2024, government will continue to tackle inflation, strengthen economic resilience and provide more support for the economy.
“It also included a review of the 2024 budget implementation, where it acknowledged that a review of the implementation of development 2024 budget reviews promising progress in revenue collection and expenditure management, despite lags in pro rated targets, the overall trajectory shows that fiscal efforts are on track these key non oil streams performing better than anticipated.
“Equally It included parameters for the 2025- 2027 medium term physical framework, which include an oil price benchmark of $75 barrel for 2025 oil production of 2.0 6 million barrels a day, as well as an exchange rate of N1400 to $1 and GDP growth of 4.6%.
“The federal government budget estimate is the aggregate expenditure is estimated at 47 trillion, and this includes a borrowing of 13. 8 trillion, which is 3.87% of estimated and it includes projections
“Especially for the first time, provisions of contribution to the development commissions that have been passed by the National Assembly who are in the process of being passed by the National Assembly”, Edun explained.
Bagudu also noted that FEC approved the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP).
He said the Nigerian economy has turned in the right direction significantly, achieving gross positive growth rate in economic stability.
The Minister added that the FEC also reviewed the 2024 budget implementation, adding that this includes promising progress in revenue collection and expenditure management.
