- Bold spending plan targets N47.9 trillion with a N13 trillion deficit
- Education, health, and security top allocations in “restoration budget”
President Bola Ahmed Tinubu has earmarked N15.81 trillion for debt servicing in the proposed 2025 federal budget, unveiled on Wednesday during a joint session of the National Assembly. The budget, tagged the “Restoration Budget,” amounts to N47.9 trillion in total expenditure, with a targeted revenue of N34.82 trillion.
“The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socio-economic fabric of our society,” Tinubu said. However, he acknowledged the fiscal challenge posed by a N13.08 trillion deficit, representing 3.89% of GDP.
Key Allocations
Defence and security top the sectoral allocations with N4.06 trillion, reflecting the government’s commitment to tackling insecurity. Education receives N3.5 trillion, while N2.4 trillion is allocated to healthcare, aiming to strengthen critical infrastructure in these sectors.
Tinubu assured Nigerians of plans to stabilize the economy, projecting a reduction in inflation from 34.6% to 15% and an improvement in the exchange rate from N1,700 to N1,500 per US dollar.
Debt Servicing Commitment
Tinubu emphasized the need to address the country’s burgeoning debt obligations. “Government expenditure in the same year is projected to be N47.90 trillion, including N15.81 trillion for debt servicing. I promise we have to bring it down,” he said.
The proposed budget signals Tinubu’s intent to strike a balance between fiscal discipline and social investment, as he seeks to deliver on his administration’s pledge to restore economic stability while tackling insecurity and poverty.
The National Assembly is expected to scrutinize the proposal in the coming weeks, as stakeholders call for transparency and accountability in the allocation and execution of funds.
