President Bola Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law.
The signing took place on Friday at the State House in Abuja, with key government officials and National Assembly leaders in attendance.
This budget was passed by both chambers of the National Assembly on February 13, following the President’s request to raise the initial proposal of ₦49.7 trillion.
Lawmakers eventually approved a higher amount of ₦54.99 trillion, exceeding Tinubu’s revised figure of ₦54.2 trillion.
The budget increase reflects additional expected revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
A significant portion of the funds has been allocated to security, infrastructure, healthcare, and education, including a $200 million provision to mitigate the effects of reduced health aid from the U.S.
The 2025 fiscal plan is based on key economic projections, including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel.
The government also expects an exchange rate of ₦1,500 per U.S. dollar and is aiming to lower inflation from 34.8% to 15% within the year.
A major aspect of the budget is tax reform, which Tinubu emphasizes as a strategy to boost revenue and economic stability.
Proposed changes include raising the value-added tax (VAT) to 12.5% by 2026 while exempting essential goods such as food and medicine to lessen the impact on citizens.
The reform also proposes redistributing VAT revenues to benefit states that generate more, a policy that has sparked debate on economic fairness across regions.
The newly signed budget represents a nearly 100% increase from the ₦27.5 trillion allocated in 2024.
Details later.
(Prompt news)