President Bola Tinubu has unveiled a proposed 2025 “Restoration Budget” totaling N47.9 trillion, with a significant allocation of N15.81 trillion earmarked for debt servicing. Tinubu presented the budget proposal to a joint session of the National Assembly on Wednesday, emphasizing his administration’s commitment to economic reform and fiscal consolidation.
“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.
The government projects N34.82 trillion in revenue to fund the budget, leaving a budget deficit of N13.08 trillion, representing 3.89% of the nation’s GDP. The President acknowledged the heavy burden of debt servicing and pledged to work towards reducing it.
Key allocations in the budget include N4.06 trillion for defence and security, which takes the largest share, followed by N3.5 trillion for education and N2.4 trillion for health.
In outlining macroeconomic targets, Tinubu projected inflation to decline from the current 34.6% to 15% by the end of 2025. Additionally, he expressed optimism about stabilizing the naira, aiming to strengthen the exchange rate from the current N1,700 to the dollar to N1,500.
The proposed budget underscores Tinubu’s focus on addressing Nigeria’s economic challenges while investing in critical sectors to drive growth and development. The National Assembly is expected to deliberate on the proposal in the coming weeks.