The federal government has announced that the N13 trillion deficit in the N48 trillion 2025 budget proposal will be financed through borrowing.
The Minister of Finance and Coordinating Minister for the Economy, Wale Edun made this disclosure shared on Monday after the Federal Executive Council meeting, which was presided over by President Bola Tinubu at the State House in Abuja.
He outlined the government’s financial plans for the upcoming year, disclosing that the projected revenue for 2025 is estimated at N34.82 trillion, while total expenditure is set at N47.96 trillion.
The 2025 budget proposal represents a 36.8% increase from the 2024 budget, with a deficit of N13.14 trillion, or 3.89% of Nigeria’s GDP.
Edun noted that the budget reflects the administration’s progress over the past 18 months, emphasizing a focus on fiscal sustainability and economic growth.
He emphasized the need to balance revenue, expenditure, and borrowing to foster an environment conducive to economic expansion.
“Like governments around the world, we are concerned about achieving fiscal sustainability. It is about creating a balance between revenue, expenditure, and borrowing to foster an economy that can grow sustainably,” Edun said.
He emphasized the crucial role of private-sector investment in driving growth, creating jobs, and reducing poverty.
He noted that private-sector-led economies like Nigeria’s depend on investors to fund projects that boost productivity and foster economic expansion.
“Investors play a critical role in boosting productivity, creating jobs, and bringing people out of poverty. Our reforms are aimed at creating an environment where private sector investment can thrive,” he said.
He pointed to key reforms under President Tinubu’s administration, including the removal of petroleum subsidies, market-driven foreign exchange policies, and electricity tariff adjustments, as significant contributors to economic progress.
Edun also highlighted growing investor confidence, referencing multi-billion-dollar investment commitments from Shell and Total in Nigeria.
“These investments signal renewed confidence in our economy and are a testament to the government’s ongoing reform agenda,” he noted.
The minister emphasized that the 2025 budget focuses on crucial government spending while promoting private-sector-led investments.
He also noted a significant milestone in the energy sector, as Nigeria resumed domestic refining of petroleum products for the first time in 25 years.
