President Bola Tinubu has officially signed the N54.99 trillion 2025 Appropriation Bill into law, marking a significant milestone in the nation’s fiscal planning. The signing ceremony took place on Friday at the State House in Abuja, in the presence of key government officials and principal officers of the National Assembly.
The approval of the budget came a day earlier, on February 13, when both chambers of the National Assembly passed the bill following Tinubu’s request for an upward revision from the initial N49.7 trillion proposal.
With this increase, the total budget now stands at ₦54.99 trillion ($36.6 billion), surpassing the earlier ₦54.2 trillion estimate. The adjustment accounts for anticipated additional revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
The 2025 budget prioritizes crucial sectors, including security, infrastructure, healthcare, and education. A notable allocation of $200 million has been earmarked to mitigate the impact of reduced U.S. health aid to Nigeria.
Key economic projections underpinning the budget include a crude oil production target of 2.06 million barrels per day, with a benchmark price of $75 per barrel. Additionally, the Federal Government has projected an exchange rate of ₦1,500 per U.S. dollar and aims to bring inflation down from 34.8% to 15% over the fiscal year.
A significant part of the government’s fiscal approach is tax reform, which Tinubu asserts will boost revenue generation and stabilize the economy. The proposed tax changes include an increase in value-added tax (VAT) to 12.5% by 2026, with exemptions for essential goods such as food and medicine to ease the impact on households.
Furthermore, the government plans to reallocate VAT revenues to favor states that generate higher contributions, a policy that has sparked debate over regional economic disparities.
The 2025 Appropriation Act represents a near doubling of the previous year’s budget, increasing by 99.96% from the N27.5 trillion allocated in 2024. The implementation of this budget is expected to play a crucial role in shaping Nigeria’s economic trajectory in the coming year.
