Nigeria’s N54.99 Trillion Budget: A Catalyst for Economic Growth and Stability

Abubakar Atiku Bagudu announced Nigeria’s N54.99 trillion 2025 budget, dubbed the “Budget of Restoration,” as essential for economic expansion. It reflects significant allocations for national security, infrastructure, and human capital development, responding to rising GDP growth. President Tinubu underscored fiscal responsibility and the importance of accountability in managing resources to secure future prosperity.

The Nigerian budget for 2025, amounting to N54.99 trillion, is characterized as bold and ambitious by Abubakar Atiku Bagudu, the minister of budget and economic planning. He asserted that this budget aims to support economic expansion and follows a positive trajectory for the economy. Dubbed the “Budget of Restoration,” it is designed to secure Nigeria’s future and rebuild its prosperity by doubling the previous year’s allocation of N27.5 trillion.

The latest data indicates that Nigeria’s Gross Domestic Product (GDP) grew by 3.84 percent in the fourth quarter of 2024, surpassing the 3.46 percent growth from the previous quarter. This represents the fastest economic growth rate since 2021, aided by significant advancements in the services sector and strengthened food security initiatives, according to the National Bureau of Statistics (NBS).

Bagudu emphasized that the budget aims to stabilize and grow the economy further amidst declining inflation rates, particularly in food prices. He expressed confidence in the government’s reform strategies, though he acknowledged that the nation has not yet reached its full potential. The minister noted that public support for these economic changes has garnered positive responses from investors.

The N54.99 trillion budget allocates substantial funds to critical sectors, including N6.11 trillion for National Security, marking the highest defense budget ever. Infrastructure projects receive N5.99 trillion to enhance connectivity and promote economic growth, while Human Capital Development is funded with N5.70 trillion to improve healthcare, education, and workforce skills. Additional allocations include N3.73 trillion for Agriculture and Food Security and N723.68 billion for Social Welfare programs.

The budget also features significant capital expenditure increases of N23.4 trillion, accounting for 42.6 percent of total spending, primarily aimed at infrastructure investments. Meanwhile, recurrent expenditures rise to N14.2 trillion, reflecting a 20.34 percent increase to accommodate public sector wage increases. Debt servicing takes a substantial N14.32 trillion, representing 26.1 percent of the budget, resulting in a fiscal deficit of N9.22 trillion, with a deficit-to-GDP ratio of 1.52 percent.

President Tinubu, during the budget signing, highlighted the importance of aligning expenditures with actual revenues and emphasized the necessity for responsible fiscal practices to prevent burdening future generations with debt. He pledged to enhance government revenue through efficient reforms and to pursue public-private partnerships to finance critical projects. Ultimately, he framed the budget as a commitment to security, prosperity, and opportunity for all Nigerians, asserting the need for perseverance and collective effort to revitalize the economy and ensure a brighter future for the nation.

In conclusion, Nigeria’s 2025 budget aims to bolster economic growth, prioritize critical sectors, and stabilize the economy amidst current challenges. The unprecedented allocation of N54.99 trillion reflects a commitment to national security, infrastructure, human development, and social welfare. While addressing fiscal sustainability, the government emphasizes accountability and partnership with private sectors to foster investment and ensure prosperity for all citizens.

Original Source: businessday.ng