President Bola Tinubu of Nigeria Wednesday in Abuja assured Nigerians of better days ahead as economic reforms begin to yield positive results, with noticeable signals in improved security, education, health care, and a globally acknowledged 3.4 per cent GDP growth in third quarter of 2024.
President Tinubu gave the assurance at the National Assembly during presentation of the N49.7 trillion 2025 Appropriation Bill to the joint session of the Senate and House of Representatives, attributing the successes recorded so far in economic reforms to the patience, resilience and tolerance of Nigerian in supporting the process.
The President projected an expenditure bill of N49.7 trillion with priority on education, healthcare and security.
President Tinubu said the 2025 budget will focus on restoration, securing peace and rebuilding prosperity, which reflects the core vision of the Renewed Hope Agenda of improving the livelihood of Nigerians through the strengthening of social and physical infrastructure, and ensuring inclusivity in reaching development goals.
“The 2025 Budget Proposal again reinforces our administration’s roadmap to secure peace, prosperity, and hope for a greater future for our beloved nation. This budget christened, “Budget of Restoration: Securing Peace, Rebuilding Prosperity,” strikes at the very core of our Renewed Hope Agenda and demonstrates our commitment to stabilizing the economy, improving lives, and repositioning our country for greater performance.
“The journey of economic renewal and institutional development, which we began 18 months ago as a nation, is very much underway. It is not a journey of our choosing but one we had to embark on for Nigeria to have a real chance at greatness. I thank every Nigerian for embarking on this journey of REFORMS and TRANSFORMATION with us.
“The road of reforms is now clearly upon us, and as the President of this blessed nation, I know this less-travelled road has not been easy. That there have been difficulties and sacrifices. They will not be in vain. And we must keep faith with the process to arrive at our collectively desired destination,’’ the President said.
President Tinubu noted that the 2025 budget will focus on restoration and seek to consolidate on the key policies instituted to restructure the economy to boost human capital development, increase the volume of trade and investments, bolster oil and gas production, and get the manufacturing sector humming again and ultimately increase the competitiveness of our economy.
He said the ongoing economic reforms would not be reversed; rather it will be strengthened to build on the gains of stimulating the economy to be more robust, equitable, predictable and globally competitive.
“We do not intend to depart from this critical path to strengthen the Nigerian economy. Just as I believe in the resilience of our economy to withstand the current challenges, I also strongly believe in the resilience of the Nigerian people. Again, I summon the unstoppable Nigerian spirit to lead us on as we work to rebuild the fabric of our economy and existence.
“The improvements we witnessed in the 2024 budget have led us into the 2025 budget. The goals of advancing national security, creating economic opportunities, investing in our youthful population, infrastructure development, and national re-orientation form the core of the 2025 budget. But more than that, this will lay a solid foundation for Nigeria’s future growth trajectory,’’ President Tinubu stated.
The President told the lawmakers that the Nigerian economy was gradually rebounding.
“I report today that our economy is responding positively to stimulus. Our objective is to further stimulate the economy through the implementation of targeted fiscal stimulus packages through public expenditures and specific non-inflationary spending.
“The reforms we have instituted are beginning to yield results. Nigerians will soon experience a better and more functional economy.
Global economic growth for the outgoing year 2024 was projected at 3.2 percent, and against predictions, our country made significant progress.
“Our economy grew by 3.46 percent in the third quarter of 2024, up from 2.54 per cent in the third quarter of 2023. Our Foreign Reserves now stand at nearly 42 billion US dollars, providing a robust buffer against external shocks.
“Our rising exports are reflected in the current trade surplus, which now stands at 5.8 trillion naira, according to the National Bureau of Statistics. These clear results of gradual recovery, among others, reflect the resilience of our economy and the impact of deliberate policy choices we made from the outset,’’ he added.
On the performance of the 2024 budget, President Tinubu said remarkable milestones were achieved, with 14.55 trillion naira in revenue, meeting 75 per cent of target as of the third quarter, while 21.60 trillion naira was recorded in expenditure, representing 85 percent of target in the third quarter.
The President noted that outlook on 2025 was more positive for Nigerians.
“The 2025 Budget seeks to: Restore macroeconomic stability. Enhance the business environment. Foster inclusive growth, employment, and poverty reduction. Promote equitable income distribution and human capital development. Our budgetary allocations reflect the administration’s strategic priorities, especially in the implementation of the Renewed Hope Agenda and its developmental objectives.
“In 2025, we are targeting 34.82 trillion naira in revenue to fund the budget. Government expenditure in the same year is projected to be 49.7 trillion naira, including 15.81 trillion naira for debt servicing. A total of 13.08 trillion naira, or 3.89 percent of GDP, will make up the budget deficit.
“This is an ambitious but necessary budget to secure our future,’’ the President added.
President Tinubu said the government would target inflation and bring it to 15 per cent, improve foreign exchange 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).
Other projections for 2025, the President explained will include reduced importation of petroleum products alongside increased export of finished petroleum products, bumper harvests, driven by enhanced security, reducing reliance on food imports, increased foreign exchange inflows through Foreign Portfolio Investments, higher crude oil output and exports, coupled with a substantial reduction in upstream oil and gas production costs.
“The Budget projects inflation will decline from the current rate of 34.6 percent to 15 percent 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),’’ he said.
President Tinubu said the priority areas for the 2025 Budget allocations are; Defence and Security, N4.91 trillion; Infrastructure: N4.06 trillion; Health: N2.48 trillion and Education: N3.52 trillion.
“Our administration has so far disbursed 34 billion naira to over 300,000 students via the Nigeria Education Loan Fund (NELFUND). In the 2025 Budget, we have made provision for 826.90 billion naira for infrastructure development in the educational sector. This provision also includes those for the Universal Basic Education (UBEC) and the nine new higher educational institutions,’’ he noted.
In his remarks, the President of the Senate, Sen. Godswill Akpabio, thanked the President for his bold and courageous effort in rebuilding the Nigerian economy, assuring that the lawmakers will remain selfless, and patriotic in supporting the reforms, particularly at the grassroots.
Describing President Tinubu as a “national treasure’’, Sen. Akpabio commended the President for improvement in security, international recognition and treatment of Nigerians with more dignity, facilitating student loans, reduced debt servicing, social security for the less privileged and signing of the minimum wage bill with promptness.
He said those critical of the proposed tax reforms should create more time to study the details of the bill before the National Assembly.
Speaker of the House of Representative. Rt. Hon. Tajudeen Abbas, said the tax reform will ensure equitable, efficient collection and utilisation of revenue and ensure more consideration for the underprivileged and vulnerable Nigerians.
He said the lawmakers would continue to support the President to realize his dream for the country.
