The Federal Government of Nigeria has given the green light to the Medium Term Expenditure Framework and Fiscal Strategy Paper for the period 2025–2027, which sets a proposed budget size of N47.9 trillion and includes new borrowings totaling N9.22 trillion.
Minister of Budget and Economic Planning, Abubakar Bagudu, shared the details of the framework during a press briefing following this week’s Federal Executive Council meeting held at Aso Rock Villa in Abuja.
Bagudu explained, “The Federal Executive Council approved a memorandum by the Ministry of Budget and Economic Planning, which was presented by the Director General of the Budget Office (Tanimu Yakubu) on the Medium Term Expenditure Framework and Fiscal Strategy Paper for 2025 – 2027.”
The minister further indicated that the framework will be submitted to the National Assembly by either Friday, November 15, or Monday, November 18. The outlined fiscal parameters include an oil price benchmark of $75 per barrel, a daily oil production target of 2.06 million barrels, an exchange rate projection of N1,400 to $1, and a GDP growth rate target of 4.6 percent.
According to Bagudu, “For 2025, the Federal Government’s budget estimate, the aggregate expenditure is estimated at N47tn, and this includes a borrowing of N13.8tn, which is 3.87 percent of the estimated GDP.” He added that, for the first time, the budget also includes provisions for contributions to development commissions previously approved by the National Assembly.
The approved budget in the MTEF projects N47.9 trillion, with new borrowings of N9.22 trillion to cover the 2025 deficit. Bagudu highlighted the government’s commitment to sustaining reforms in the petroleum sector, specifically encouraging market deregulation of petroleum prices and exchange rates. Additionally, he urged the Nigerian National Petroleum Corporation to reduce oil and gas production costs, even suggesting potential amendments to the Petroleum Industry Act 2021 to address risks to the Federation.
Bagudu also reviewed the 2024 budget performance, noting that revenue collection and expenditure management have shown positive results, with some key non-oil revenue streams exceeding expectations. He stated, “Despite lags in prorated targets, the overall trajectory shows that physical efforts are on track with key non-oil streams performing better than anticipated.”
This framework underscores the government’s strategy to drive economic growth and manage fiscal challenges as it sets the course for the coming years.
