The 2025 budget, recently signed into law by President Bola Tinubu, has been hailed as an ambitious statement aimed at repositioning the Nigerian economy. However, stakeholders have emphasized the need for a holistic implementation of the budget to achieve its objectives.
The N54.99tn budget is based on several key assumptions, including an estimated revenue of N40.89tn and a deficit of N14.1tn. The government hopes to cover the deficit through increased oil sales and tax collection, among other means. The budget also sets out key assumptions for the 2025 fiscal year, including 2.12 million barrels per day of oil production, a $75 oil price, an exchange rate of N1,500, 4.6 per cent Gross Domestic Product growth, and a 15 per cent inflation rate.
Stakeholders have expressed concerns about the budget’s assumptions, particularly with regards to oil production and price. They have also highlighted the need for a more detailed plan for achieving the budget’s objectives. According to Prof Segun Ajibola, former president of the Chartered Institute of Bankers of Nigeria, “The budget is ambitious, but it is still achievable. However, we need to see a more detailed plan for achieving the budget’s objectives, particularly with regards to oil production and price.”
The Ministry of Budget and Economic Planning, led by Minister Atiku Bagudu, plays a crucial role in the implementation of the budget. The ministry is responsible for driving the economic segments of the administration’s 8-point ‘Renewed Hope Agenda,’ which includes food security, poverty eradication, economic growth, job creation, access to capital, inclusion, rule of law, and anti-corruption. The ministry has also been instrumental in championing strategic investments in energy and infrastructure as critical enablers of long-term economic stability.
Infrastructure development is a critical component of the budget, with allocations directed towards road construction, railway expansion, and housing projects. The budget aims to complete the Abuja-Kaduna railway project, rehabilitate the Itakpe-Ajaokuta rail line, and advance key highway projects like the Lagos-Calabar Coastal Highway. According to Dr Muda Yusuf, Director of the Centre for Promotion of Private Enterprise, “Infrastructure development is critical to the achievement of the budget’s objectives. We need to see a more detailed plan for achieving the budget’s infrastructure development objectives.”
Power generation is another critical component of the budget, with the government aiming to increase power generation to meet the country’s growing demand. The budget ministry has emphasized the need for a reliable power supply, pointing to policies that the Federal Government has implemented to enhance renewable energy adoption and improve electricity access nationwide. According to Ajibola, “Power generation is critical to the achievement of the budget’s objectives. We need to see a more detailed plan for achieving the budget’s power generation objectives.”
Agriculture is a critical sector in the Nigerian economy, and the budget has allocated significant funds towards agricultural development. The budget ministry has emphasized the need for a more detailed plan for achieving the budget’s agricultural development objectives. According to Yusuf, “Agriculture is critical to the achievement of the budget’s objectives. We need to see a more detailed plan for achieving the budget’s agricultural development objectives.”
The 2025 budget is an ambitious statement aimed at repositioning the Nigerian economy. However, stakeholders have emphasized the need for a holistic implementation of the budget to achieve its objectives. The budget ministry plays a crucial role in the implementation of the budget, and it is essential that the ministry provides a more detailed plan for achieving the budget’s objectives. With a more detailed plan, Nigeria can achieve the objectives of the 2025 budget and move towards a more prosperous future.