Senate Greenlights Tinubu’s ₦2025 Budget For Second Reading Amid Tensions

On Thursday, the 10th Senate, under the leadership of Godswill Akpabio, approved the ₦49.7 trillion 2025 budget for its second reading.....KINDLY READ THE FULL STORY HERE▶

The budget was passed after extensive discussions during plenary, following President Bola Tinubu’s presentation the day before. Akpabio, who presided over the session, called for a voice vote, and the budget was subsequently referred to the Committee on Appropriations, chaired by Senator Solomon Adeola.

President Tinubu had presented the 2025 “Budget of Restoration” to a joint session of the National Assembly on Wednesday, with a focus on fostering peace and prosperity. The budget targets a revenue projection of ₦34.82 trillion to cover total expenditures of ₦47.9 trillion.

The proposed budget, which includes a ₦13 trillion deficit, allocates ₦4.91 trillion to Defence and Security, ₦4.06 trillion to Infrastructure, ₦3.5 trillion to Education, and ₦2.48 trillion to Health. Additionally, ₦15.81 trillion is earmarked for debt servicing. Key assumptions include a daily oil production of 2.06 million barrels, an exchange rate of ₦1,500 to the US dollar, and a projected inflation rate of 15%, down from the current 34.6%.

In his speech, President Tinubu highlighted the ambitious nature of the budget, stating, “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.”

He further explained, “In 2025, we are targeting ₦34.82 trillion in revenue to fund the budget, with total government expenditure projected to be ₦47.90 trillion, including ₦15.81 trillion for debt servicing. The budget will have a deficit of ₦13.08 trillion, or 3.89% of GDP.”

The President also outlined several key projections, including a decline in inflation from the current 34.6% to 15%, an improved exchange rate of ₦1,500 to the US dollar, and a base crude oil production assumption of 2.06 million barrels per day.

These projections are supported by anticipated factors such as reduced petroleum imports, increased export of finished petroleum products, enhanced security contributing to bumper harvests, greater foreign exchange inflows from Foreign Portfolio Investments, and higher crude oil production with reduced production costs.

Tinubu also shared positive developments in the economy, noting, “Our economy grew by 3.46% in the third quarter of 2024, up from 2.54% in the same period last year. Our foreign reserves now stand at nearly 42 billion US dollars, providing a robust buffer against external shocks.”

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