FG To Borrow N13.8 Trillion For Ambitious 2025 Budget

FG To Borrow N13.8 Trillion For Ambitious 2025 Budget

The Federal Executive Council (FEC) has approved a N47.9 trillion budget proposal for 2025, with plans to borrow N13.8 trillion to finance key infrastructure and economic projects. The budget, which forms part of the Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) for 2025-2027, is expected to be submitted to the National Assembly in the coming days.…….CONTINUE READING 

The Minister of Budget and Economic Planning, Atiku Bagudu, outlined the fiscal strategy, which assumes a 4.6% GDP growth rate, an oil price benchmark of $75 per barrel, and oil production of 2.06 million barrels per day. Despite the ambitious growth projections, experts have raised concerns over the feasibility of these assumptions, citing challenges in oil production, inflationary pressures, and exchange rate volatility.

Bagudu emphasized that the borrowing plan is part of a strategic approach to balance government spending while ensuring sustainable debt management, noting that the Nigerian economy is showing resilience with a 3.19% growth rate recorded in Q2 of 2024. However, economists have pointed out that some budget assumptions may be too optimistic, particularly the oil production target and GDP growth forecast.

The FEC also approved the 2025-2027 MTEF and FSP, which will guide the government’s long-term fiscal policies and strategies. The Nigerian government aims to pass the budget by December 2024 to ensure a predictable fiscal environment for the coming year.