President Bola Tinubu has officially signed the N54.99 trillion 2025 Appropriation Bill into law, marking a 99.96% increase from the 2024 budget of N27.5 trillion.
Key Highlights of the 2025 Budget:
🔹 Economic Targets:
- Crude Oil Production: 2.06 million barrels per day
- Oil Benchmark Price: $75 per barrel
- Exchange Rate Projection: ₦1,500/$1
- Inflation Reduction Goal: 34.8% → 15%
🔹 Revenue Boost & Tax Reforms:
- Tinubu’s fiscal plan includes tax reforms aimed at enhancing revenue generation and economic stability.
- VAT Increase: Planned rise to 12.5% by 2026, but essential goods (food & medicine) will be exempted.
- VAT Revenue Allocation: More funds to states that generate higher VAT, sparking regional debates.
🔹 Sectoral Allocations:
- Security, infrastructure, education, and health receive major funding.
- $200m earmarked to mitigate the impact of reduced U.S. health aid.
How We Got Here:
- Tinubu initially proposed a ₦49.7tn budget but later requested an increase.
- The National Assembly approved ₦54.99tn on February 13, 2025, exceeding his revised ₦54.2tn request.
This budget—the largest in Nigeria’s history—sets an ambitious course for economic recovery, though experts warn that exchange rate volatility and inflation challenges could impact execution.
