President Bola Tinubu has officially signed the N54.99 trillion 2025 Appropriation Bill into law.
The signing ceremony took place on Friday at the State House in Abuja, with key National Assembly leaders and senior government officials in attendance. The bill was passed by both chambers of the National Assembly on Thursday, February 13, following Tinubu’s request for an increase from the initially proposed N49.7 trillion.
The National Assembly approved a ₦54.99 trillion ($36.6 billion) budget for the fiscal year, exceeding President Tinubu’s initial proposal of ₦54.2 trillion. This increase reflects additional expected revenues from agencies like the Federal Inland Revenue Service (FIRS) and the Nigeria Customs Service.
The 2025 budget prioritizes crucial sectors such as security, infrastructure, education, and health. Notably, it allocates $200 million to counter the impact of recent reductions in U.S. health aid.
Based on ambitious economic forecasts, the budget targets a crude oil production of 2.06 million barrels per day at a benchmark price of $75 per barrel. The government also projects an exchange rate of ₦1,500 to the U.S. dollar and aims to reduce inflation from 34.8% to 15% over the course of the year.
A key element of the fiscal plan includes sweeping tax reforms, which Tinubu stated are crucial for boosting revenue generation and ensuring economic stability. These reforms include raising the value-added tax (VAT) to 12.5% by 2026, with essential goods such as food and medicine exempt to ease the burden on households.
Another major proposal in the reform is the reallocation of VAT revenues, favoring states that generate more, a move that has sparked discussions over regional economic inequalities.
The 2025 Appropriation Act marks a staggering 99.96% increase from the 2024 budget of N27.5 trillion.
Details later…
