The 10th Senate, led by Godswill Akpabio, approved the second reading of the ₦49.7 trillion 2025 Budget on Thursday.
According to reports, the budget received approval during plenary after extensive deliberations following its presentation by President Bola Tinubu on Wednesday.
The budget was subsequently referred to the Committee on Appropriations, chaired by Senator Solomon Adeola, after a voice vote conducted by Akpabio, who presided over the session.
President Tinubu had presented the 2025 Budget of Restoration to a joint session of the National Assembly, outlining a vision focused on peace and prosperity.
The budget projects revenue of ₦34.82 trillion to finance an aggregate expenditure of ₦47.9 trillion, leaving a deficit of ₦13.0 trillion.
Key allocations in the proposed budget include ₦4.91 trillion for Defence and Security, ₦4.06 trillion for Infrastructure, ₦3.5 trillion for Education, and ₦2.48 trillion for Health.
In his address, Tinubu also highlighted that ₦15.81 trillion is set aside for debt servicing. Other economic projections include daily oil production of 2.06 million barrels, an exchange rate of ₦1,500 to a US dollar, and a reduced inflation rate of 15%, down from the current 34.6%.
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.”
Tinubu informed federal lawmakers that a series of economic reforms being carried out by his government are yielding positive results, saying, “Our economy grew by 3.46 per cent 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.”
