President Bola Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law, marking a significant milestone in Nigeria’s fiscal planning for the coming year. This signing follows a series of revisions to the initial budget proposal, which had been set at ₦49.7 trillion.
The National Assembly approved the revised budget on February 13, after thorough discussions and amendments, bringing the total appropriation to a historic high of nearly ₦55 trillion, a remarkable increase of 99.96% compared to the ₦27.5 trillion allocated for the 2024 fiscal year.
The signing took place in the State House in Abuja, with the president reaffirming the government’s commitment to implementing the budget effectively in the interest of the nation’s growth and development. The ₦54.99 trillion budget outlines crucial expenditures in several key areas, including statutory transfers, recurrent costs, capital expenditure, and debt servicing.
A significant portion of the budget, approximately ₦23.96 trillion, has been earmarked for capital expenditure, which will play a pivotal role in infrastructure development across the country. The capital expenditure is expected to fund vital projects that will enhance Nigeria’s physical infrastructure, including roads, energy, and telecommunications, contributing to long-term economic growth and job creation.
Recurrent expenditure, excluding debt servicing, is set at ₦13.64 trillion. This allocation will fund the day-to-day operations of government institutions and is aimed at ensuring the smooth running of various public services, including education, healthcare, and civil service salaries.
Debt servicing remains a major focus of the budget, with ₦14.32 trillion set aside to meet the country’s financial obligations. The high debt servicing allocation reflects the continued pressure of Nigeria’s national debt, which has grown significantly in recent years. Nonetheless, the government has prioritized debt management, aiming to strike a balance between fulfilling its obligations and financing other crucial areas of public service.
The budget also reflects the government’s efforts to maintain fiscal discipline, with a deficit-to-GDP ratio pegged at 1.52%. This ratio, relatively low in comparison to previous years, indicates a more measured approach to borrowing and fiscal management, aiming to keep public debt at sustainable levels while continuing to meet the nation’s development goals.
In signing the budget, President Tinubu emphasized that the robust nature of the 2025 fiscal plan is aimed at addressing critical development needs and boosting economic activities across various sectors. He also reassured Nigerians that the budget’s implementation would be carried out transparently and with full accountability, ensuring that funds are used effectively to deliver on the promises made by the administration.
