President Bola Tinubu has officially signed the ₦54.99 trillion 2025 Appropriation Bill into law.
The signing took place on Friday in a brief ceremony at the State House, Abuja, attended by key government officials and principal officers of the National Assembly.
The budget was approved by the National Assembly on Thursday, February 13, following Tinubu’s request for an increase from the initially proposed ₦49.7 trillion. Lawmakers ultimately raised the figure to ₦54.99 trillion, surpassing the President’s revised proposal of ₦54.2 trillion.
The budget increase accounts for additional expected revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service. The funds are allocated to critical sectors, including security, infrastructure, education, and healthcare, with $200 million specifically earmarked to cushion the effects of recent reductions in U.S. health aid.
Key economic projections for the 2025 budget include a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel. Additionally, the Federal Government anticipates an exchange rate of ₦1,500 per U.S. dollar and aims to reduce inflation from 34.8% to 15% within the year.
A major focus of the fiscal plan is tax reform, with Tinubu highlighting efforts to boost revenue and stabilize the economy.
The proposed changes include increasing the value-added tax (VAT) to 12.5% by 2026 while exempting essential items such as food and medicine to ease the burden on citizens. The reform also seeks to redistribute VAT revenues in favor of states generating higher revenue, a move that has sparked discussions on regional economic disparities.
The 2025 budget represents a 99.96% increase compared to the ₦27.5 trillion allocated for 2024.
More details to follow…