President Bola Tinubu has officially signed the N54.99 trillion 2025 Appropriation Bill into law. The signing took place on Friday at a brief ceremony in his office at the State House, Abuja, with key members of the National Assembly and top government officials in attendance.
The budget, which was initially proposed at N49.7 trillion, was increased after Tinubu requested additional funds. On Thursday, February 13, both chambers of the National Assembly passed the revised N54.99 trillion budget. This adjustment was made to accommodate expected revenue increases from agencies like the Federal Inland Revenue Service and the Nigeria Customs Service.
The newly signed budget focuses on several critical areas, including security, infrastructure, education, and healthcare. It also includes a $200 million allocation to help offset the effects of recent reductions in U.S. health aid.
The 2025 budget is built on several key economic projections. The government expects crude oil production to reach 2.06 million barrels per day, with an estimated benchmark price of $75 per barrel. Additionally, the Federal Government projects an exchange rate of ₦1,500 per U.S. dollar. Another major goal of the budget is to bring down inflation, which currently stands at 34.8%, to 15% by the end of the year.
A significant part of the fiscal plan includes tax reforms aimed at increasing government revenue and ensuring economic stability. One of the proposed changes is an increase in the value-added tax (VAT) to 12.5% by 2026. However, essential goods such as food and medicine will be exempt from this increase to reduce financial strain on citizens.
Another aspect of the reform involves redistributing VAT revenue in a way that benefits states generating higher revenues. This proposal has sparked debates, with some arguing that it could deepen regional economic inequalities.
The 2025 Appropriation Act represents a significant increase from the previous year’s budget. In 2024, the budget stood at N27.5 trillion, meaning the new figure marks a 99.96% rise.
