Nigeria’s budget for 2025 is its biggest yet. Here are the key points

The federal government has announced its proposed budget for 2025, barely a month to the close of year.

The Tinubu administration says it will spend N47 trillion next year, according to budget minister Atiku Bagudu.

It is the highest budget for the country in its history, in naira terms. For comparison, the budget for 2023 was N28.8 trillion while that of 2020 was N10.3 trillion.

Here are the key things to know about the spending plan:

1. The budget is proposed on the assumption that oil will sell at an average of $75 per barrel. The target production is 2 million barrels per day.
2. The budget has a deficit of N13.8 trillion, which means the government’s planned revenue to pay for the budget is short by N13.8 trillion.
3. The government plans to borrow to pay for the balance. Finance minister Wale Edun said the government plans to raise a total of $2.2 billion from international capital markets this year to support its macro-economic reforms.
4. The deficit is 3.87% of estimated GDP, Mr Bagudu told reporters after a cabinet meeting in Abuja.
5. The 2025 budget also includes a forecast exchange rate to the U.S. dollar at N1,400. The naira closed at 1,655 to the dollar at the official market on Thursday.
6. The full budget details will be available later after its presented by President Bola Tinubu to the National Assembly, which will consider the spending plan and approve it.
7. Key details expected are the amount to be spent on capital projects, recurrent projects and debt servicing.