President Bola Tinubu has presented an ambitious ₦47.9 trillion “restoration budget” for 2025, with a staggering ₦15.81 trillion allocated solely for debt servicing.
The budget proposal was unveiled on Wednesday during a joint session of the National Assembly, marking Tinubu’s firm pledge to tackle Nigeria’s economic challenges head-on.
“This is an ambitious but necessary budget to secure our future,” Tinubu said, as he addressed lawmakers.
The President revealed that the government aims to generate ₦34.82 trillion in revenue to fund the 2025 budget, while projecting a total expenditure of ₦47.9 trillion.
The budget deficit, estimated at ₦13.08 trillion or 3.89% of GDP, remains a critical challenge, he acknowledged.
Debt Servicing Dominates Spending
Of the proposed budget, ₦15.81 trillion is earmarked for debt servicing, sparking concerns about Nigeria’s mounting financial obligations.
The President, however, assured Nigerians of his administration’s commitment to reducing the burden of debt.
“I promise we have to bring it down,” Tinubu stated, expressing hope for better fiscal management in the future.
Critics have highlighted that the allocation for debt servicing dwarfs spending on critical sectors like health and education, a trend they say reflects the government’s struggle with ballooning public debt.
Sectoral Allocations: Defence Tops the Chart
The 2025 budget prioritizes defence and security, which receive ₦4.06 trillion, reflecting the government’s focus on combating insecurity.
Education comes next with ₦3.5 trillion, followed by health at ₦2.4 trillion.
Infrastructure also received significant attention, with ₦4.06 trillion allocated to improve roads, power supply, and transportation systems across the country.
“These allocations reflect our commitment to building a secure and prosperous nation,” Tinubu remarked.
Inflation and Exchange Rate Targets Raise Eyebrows
Tinubu’s budget projects a sharp reduction in inflation from the current 34.6% to 15% by the end of 2025.
The President also forecasted an improvement in the exchange rate, with the naira strengthening from ₦1,700 per dollar to ₦1,500.
“These targets may seem ambitious, but they are achievable through deliberate actions,” Tinubu asserted.
He highlighted measures such as reducing petroleum imports, boosting exports of refined products, and achieving food security through enhanced security measures and local production.
However, many Nigerians remain skeptical of these projections, given the recent inflation surge and the volatile exchange rate.
Economic Hardship Bites Harder
The announcement of the 2025 budget comes at a time when Nigerians are grappling with worsening economic conditions.
The National Bureau of Statistics (NBS) recently reported that inflation rose to 34.6% in November, up from 33.88% in October.
The Bureau’s Consumer Price Index (CPI) revealed that food inflation hit 39.93% in November, reflecting the rising cost of basic goods.
“These numbers are a stark reminder of the challenges ordinary Nigerians face every day,” said a Lagos-based economist, Olufemi Akande.
Many Nigerians have also expressed frustration with the naira’s depreciation, which has seen the exchange rate soar to over ₦1,700 per dollar in recent months.
“The government must do more to stabilize the economy,” said Amina Yusuf, a trader in Abuja.