Senate Advances 2025 Budget with Second Reading Approval
The Nigerian Senate has approved the second reading of the ₦49.7 trillion 2025 national budget, titled the “Budget of Restoration.” The decision, reached during Thursday’s plenary session, followed extensive deliberations on its core principles. Senators commended President Bola Tinubu’s vision, expressing hope for the nation’s progress under his leadership.
The Senate President, Godswill Akpabio, presided over the session and conducted a voice vote to pass the bill to the Committee on Appropriations for further review. Senator Solomon Adeola, who chairs the committee, will oversee the detailed examination and recommendations.
President Tinubu had presented the budget proposal on Wednesday at a joint session of the National Assembly. The budget outlines an ambitious revenue projection of ₦34.82 trillion to support total expenditures of ₦47.9 trillion, leaving a deficit of ₦13 trillion. Key allocations include ₦4.91 trillion for Defence and Security, ₦4.06 trillion for Infrastructure, ₦3.5 trillion for Education, and ₦2.48 trillion for Health.
Debt servicing commands a significant portion of the budget at ₦15.81 trillion. Tinubu highlighted fiscal parameters such as oil production at 2.06 million barrels per day, an exchange rate of ₦1,500 per US dollar, and inflation dropping from 34.6% to 15% in 2025.
He said, “The numbers for our 2025 budget proposal tell a bold and exciting story of the direction we are taking to retool and revamp the socio-economic fabric of our society.
“In 2025, we are targeting ₦34.82tn in revenue to fund the budget.
“Government expenditure in the same year is projected to be ₦47.90tn, including ₦15.81tn for debt servicing.
“A total of ₦13.08tn, or 3.89 per cent of GDP, will make up the budget deficit.
“This is an ambitious but necessary budget to secure our future.
“The Budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira and a base crude oil production assumption of 2.06 million barrels per day (mbpd).
“These projections are based on the following observations: (i) Reduced importation of petroleum products alongside increased export of finished petroleum products, (ii) Bumper harvests, driven by enhanced security, reducing reliance on food imports, (iii) Increased foreign exchange inflows through Foreign Portfolio Investments, and (iv) Higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.”
He pointed to key economic reforms boosting growth, noting a 3.46% GDP rise in Q3 2024, up from 2.54% in the same period last year. Foreign reserves now stand at $42 billion, providing a buffer against external shocks.
