President Tinubu Signs N54.99trn 2025 Budget into Law
President Tinubu Signs N54.99trn 2025 Budget into Law
President Bola Tinubu has officially signed the N54.99 trillion 2025 Appropriation Bill into law, marking a significant step in Nigeria’s fiscal planning.
The signing ceremony took place on Friday at the State House in Abuja, attended by principal officers of the National Assembly and other top government officials.
The budget, passed by both chambers of the National Assembly on February 13, exceeds Tinubu’s initial proposal of N54.2 trillion, reflecting adjustments to account for additional anticipated revenues from agencies like the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service.
The approved budget of N54.99 trillion ($36.6 billion) represents a 99.96 per cent increase from the 2024 budget of N27.5 trillion.
Key areas of focus in the 2025 budget include security, infrastructure, education, and health, with a specific allocation of $200 million to mitigate the impact of recent reductions in U.S. health aid.
The budget is built on ambitious economic assumptions, including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel.
The Federal Government also projects an exchange rate of N1,500 to the U.S. dollar and aims to reduce inflation from 34.8 per cent to 15 per cent within the year.
A central component of the fiscal strategy is a comprehensive tax reform aimed at boosting revenue generation and economic stability.
The reforms include increasing the value-added tax (VAT) to 12.5 per cent by 2026, while exempting essential goods like food and medicine to ease the burden on households.
Additionally, the proposal to reallocate VAT revenues to states that generate more has sparked discussions about regional economic disparities.
The 2025 Appropriation Act underscores the administration’s commitment to addressing critical national priorities while fostering economic growth and stability.
About The Author
