The federal government has declared that the N13 trillion deficit in the N48 trillion 2025 budget proposal will be financed through borrowing.
Minister of Finance and Coordinating Minister for the Economy, Wale Edun, made this known on Monday while addressing newsmen after the Federal Executive Council (FEC) meeting presided over by President Bola Tinubu at the State House, Abuja,.
He outlined the government’s financial plans for the coming year, revealing that the projected revenue for 2025 is estimated at N34.82 trillion, while total expenditure is pegged at N47.96 trillion.
This represents a 36.8% increase from the 2024 budget and leaves a deficit of N13.14 trillion, equivalent to 3.89% of Nigeria’s Gross Domestic Product (GDP).
Edun emphasized that the 2025 budget reflects the administration’s progress over the past 18 months, focusing on fiscal sustainability and economic growth.
He stressed the importance of balancing revenue, expenditure, and borrowing to create a conducive environment for economic expansion.
“Like governments around the world, we are concerned about achieving fiscal sustainability. It is about creating a balance between revenue, expenditure, and borrowing to foster an economy that can grow sustainably,” Edun said.
The Minister highlighted the role of private-sector investment in driving growth, creating jobs, and alleviating poverty, noting that private-sector-led economies, such as Nigeria’s, rely on investors to fund projects that enhance productivity and economic expansion.
According to him: “Investors play a critical role in boosting productivity, creating jobs, and bringing people out of poverty. Our reforms are aimed at creating an environment where private sector investment can thrive”.
He cited recent reforms under President Tinubu’s administration, including the removal of petroleum subsidies, market-driven foreign exchange policies, and electricity tariff adjustments, as key factors driving economic improvement.
Edun also pointed to growing investor confidence in the Nigerian economy, referencing announcements by Shell and Total of multi-billion-dollar investments in the country.
“These investments signal renewed confidence in our economy and are a testament to the government’s ongoing reform agenda,” he noted.
The minister underscored that the 2025 budget prioritizes essential government spending while fostering private-sector-led investments.
He also highlighted a significant milestone in the energy sector, with Nigeria resuming domestic refining of petroleum products for the first time in 25 years.
His words: “For the first time in about 25 years, we are refining petrol domestically, not just for fuel but also as raw materials for industries like pharmaceuticals, construction, and textiles”.
The proposed 2025 budget, according to Edun, is designed to ensure critical government spending while paving the way for robust private-sector participation to drive long-term economic growth.
Deji Elumoye
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