FG announces plans to borrow N13.8tn for 2025 budget – Newstrends
Connect with us

News

FG announces plans to borrow N13.8tn for 2025 budget

Published

on

FG announces plans to borrow N13.8tn for 2025 budget

ABUJA—THE Federal Executive Council (FEC) yesterday approved a budget proposal of N47.9 trillion for the 2025 fiscal year and borrowing of N13.8 trillion.

The Minister of Budget and Economic Planning, Atiku Bagudu, disclosed this while briefing State House correspondents, at the end of the Council meeting, presided over by President Bola Tinubu at the Presidential Villa, Abuja.

The approval is part of the Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper, for 2025-2027, by the Fiscal Responsibility Act of 2007.

The framework is expected to be submitted to the National Assembly as required by law, either on Friday or Monday.

Bagudu outlined several key parameters that will guide the 2025 budget based on economic projections and government priorities. These include a projected Gross Domestic Product (GDP) growth rate of 4.6% for 2025, an oil price benchmark of $75 per barrel and an exchange rate of N1.400 to $1.
Additionally, the government anticipates oil production at 2.06 million barrels per day.

In terms of fiscal strategy, the budget assumes that the government will borrow approximately N13.8 trillion — about 3.87% of the GDP — to fund key infrastructure projects and economic initiatives.

Bagudu emphasized that this borrowing is part of a strategic plan to balance government spending with sustainable debt management.

The Minister further noted that “the Nigerian economy is showing signs of resilience, with a 3.19% growth rate recorded in the second quarter of 2024.

READ ALSO:

This growth is expected to continue through 2025, driven by efforts to tackle inflation and stabilize key economic sectors.”

Bagudu lists the aims of fiscal policies

He stressed that the Federal Government’s fiscal policies are aimed at strengthening economic resilience, continuing to address inflationary pressures, and providing more targeted support to drive long-term growth.

Bagudu also highlighted that the implementation of the 2024 budget was progressing well, with significant improvements in revenue collection and expenditure management, despite some delays in achieving pro-rated targets.

“Non-oil revenue streams, in particular, have performed better than initially expected, showing promising progress.

The N47.9 trillion proposed budget for 2025 includes various provisions, particularly in areas such as infrastructure development, social programs, and critical national projects.

Bagudu also revealed that for the first time, the government’s budget will include contributions to the development commissions that had recently been passed or were in the process of being passed by the National Assembly.

“These measures are designed to strengthen the country’s social and economic development at the grassroots level.”

He further noted that the federal government is committed to ensuring that the 2025 budget is passed and signed into law before December 2024, in order to create a predictable fiscal environment and adhere to the January-December budget circle that the administration aims to implement moving forward.

In addition to approving the 2025 budget, the FEC also endorsed the 2025-2027 Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Papers, FSP, which outline the government’s long-term fiscal policies and strategies for achieving sustainable growth.

These documents will now be sent to the National Assembly for further review.

Bagudu emphasized that the MTEF and FSP provided the necessary roadmap for the government’s fiscal policy over the next three years, ensuring that public finances remained on a sound footing and that economic growth targets were met.

He expressed confidence that Nigeria’s economic trajectory was moving in the right direction, with positive growth recorded in key sectors.

He stressed that the government’s macroeconomic policies, particularly in the areas of market-driven pricing for petroleum products and foreign exchange, are contributing to the country’s overall economic stability.

“The fiscal efforts are on track, and we are confident that with these strategic investments and reforms, Nigeria will continue to make progress toward a more resilient and sustainable economy,” he declared.

Experts fault govt’s budget assumptions

Economy experts who spoke to Vanguard, however, faulted the budget assumptions, describing some of them as too aggressive.
In his comment, David Adonri, Analyst and Executive Vice Chairman at Highcap Securities Limited said : “One thing that bothers me is the failure of FGN to attach a report of the performance of the previous budget while seeking for approval of the new budget.

“Historical antecedents will let us know whether the assumptions underlying the new budget are reasonable.
“How will FGN finance the budget? Is it still a deficit budget like on previous occasions? There is nothing on ground to indicate that GDP growth rate of 4.6% is attainable in 2025.

“The omission of the forecast for inflation is questionable because the intended GDP growth may just be an inflationary growth which is akin to motion without movement.

“With Donald Trump’s agenda to release more fossil fuel from 2025, the crude oil price forecast may be misleading.

‘Finally, predicating the budget on a crude oil-driven economy shows that budgeting by FGN has not departed from past ruinous economic philosophy.

“It is too pedestrian for a country that should be inward-looking and focused on the mobilization of the idle factors of production in the country.”

On his part, Tunde Abidoye, Head of Equity Research FBNQest Securities Limited, said: “I think that some of the assumptions are a bit aggressive.

“The oil production benchmark of 2.06mbpd looks very ambitious given the current realized oil production level of around 1.3mbpd (ex-condensates), per NUPRC data.

“The exchange rate and GDP growth rate projections are also a bit optimistic given the current exchange rate is N1,650, and the strain on household wallets.

“However, although I think the oil price benchmark is realistic, there are potential downside risks arising from the anticipated ramp up of oil production by the US following President Trump’s victory at the polls.”
Also commenting, Clifford Egbomeade, Public Affairs Analyst/ Communications Expert, said: “The proposed 2025 budget of N47.9 trillion, based on a $75 oil benchmark, 2.06 mbd production, and 4.6% GDP growth, sets ambitious targets given Nigeria’s economic climate.

“The oil production target assumes steady output levels, which may be impacted by infrastructure limitations. Moreso, the projected 4.6% GDP growth may be optimistic, as Nigeria continues to face high inflation, currency pressures, and unemployment.

“The budget includes N9.22 trillion in new borrowing, raising concerns about fiscal sustainability given the nation’s current debt servicing load. “The assumed exchange rate of N1,400 per dollar suggests continued devaluation, which could intensify inflationary pressures. Achieving this budget will require effective fiscal reforms and greater economic diversification to meet revenue and growth targets.”

Dissecting the proposed budget, Port Harcourt-based energy analyst, Dr. Bala Zakka, said: “Oil market is very volatile and absolute caution should be taken in the process of taking the benchmark price for the 2025 budget.”

On output, he said: “The federal government said it is currently producing 1.8 million barrels per day, including condensate. Like in the case of price, adequate caution should also be taken here. I strongly believe that stakeholders, including the government and investors should work harder to further increase the nation’s capacity to produce oil and gas.”

“The Gross Domestic Product, GDP, is all about the production of goods and services in an economy. With constant power supply disruptions, it has not been possible for households and businesses to participate in the economy. It is very doubtful if they will be able to increase investment to produce goods and services in 2025.”

FG announces plans to borrow N13.8tn for 2025 budget

News

Hajj: NAHCON proposes May 6 for inaugural airlift

Published

on

Hajj: NAHCON proposes May 6 for inaugural airlift

The National Hajj Commission of Nigeria (NAHCON) has proposed May 6th for the inaugural airlift of Nigerian pilgrims for the 2025 Hajj.

Speaking at the signing of agreement with selected airlines to participate in the Hajj operations, on Monday in Abuja, NAHCON’s Commissioner for Operations, Inspectorate and License, Prince Anofi Elegushi, said this is to prepare the airlines for premium service for Nigerian pilgrims during the airlift operations.

It would be recalled that the commission had announced Max Air, Air Peace, UMZA Airline and FlyNas as the selected airlines to airlift the 52,000 pilgrims under the state allocation.

Speaking during the event, Elegushi urged the airlines to ensure no hiccup in the exercise.

He added that this year’s operations would see payment made promptly but will be in naira for Nigerian carriers and Saudi riyal for the sole Saudi carrier.

“We are trying to do away with the dollar component. What we want to do is to pay in the local currency of all the airlines. And the payment will be made according to the current rate per dollar during the instalment payment period.”

“So, as the chairman promised earlier, that payment will be made promptly. The tenure of you waiting endlessly for you to get your payment is over.

READ ALSO:

“Also, the percentage of payment that will be made will be enough for you to finish the operation and after the operation, a little reconciliation, and then the balance will be paid immediately as we too are much more concerned about, you know, sudden increments in the dollar rates. So that’s why we’ll make all the payment very snappy within the period.”

Speaking earlier, NAHCON’s Chairman, Prof. Abdullahi Usman Saleh, said the airlift of pilgrims is one of the most significant aspects of the Hajj operation.

“It requires absolute professionalism, efficiency and dedication. This process is not just about transportation; it is about fulfilling a spiritual obligation with dignity, safety and comfort.”

He said the airlines engaged have undergone a thorough selection process based on merit, reliability and proven capacity.

“NAHCON was careful in ensuring that only the most competent, well-equipped and passenger-friendly airlines are entrusted with this noble task.

“Your experience and track record in handling large-scale operations, especially Hajj-related services, have given us confidence in your ability to deliver a smooth Hajj airlift.”

He reminded them that pilgrims’ comfort, safety and convenience remain paramount from pre-boarding services to in-flight experience and post-arrival logistics, adding that” We expect nothing short of excellence.”

Hajj: NAHCON proposes May 6 for inaugural airlift

Continue Reading

News

Nigeria, UAE meet over visa restrictions

Published

on

Nigeria, UAE meet over visa restrictions

The Ministry of Foreign Affairs has announced that the Federal Government and the United Arab Emirates (UAE) will resolve issues related to visa procurement for Nigerians seeking to travel to the UAE.

The Minister of State for Foreign Affairs, Mrs Bianca Odumegwu-Ojukwu, made this known in a statement following the visit of Amb. Salem Alshamsi, the UAE Ambassador to Nigeria.

Odumegwu-Ojukwu explained that the decision was made during a meeting with Alshamsi.

She acknowledged that Nigerians had faced difficulties in obtaining UAE visas, especially tourism visas.

This challenge, according to her, persisted in spite of the warm diplomatic relations and strategic partnerships between the two countries.

“Nigeria has remained committed to the relationship. The city of Dubai in the UAE has become a popular destination for many Nigerians.

“Officially, about 12,000 Nigerians live in the UAE, ranging from unskilled workers to professionals and students across various institutions,” she said.

She noted that in 2015, nearly a million Nigerians visited the UAE, particularly Dubai, spending between 100 million dollars to 150 million dollars on visas alone, and more than 1 billion dollars on shopping, school fees, tourism, and other activities.

READ ALSO:

Odumegwu-Ojukwu stressed the need for a more balanced economic relationship between both countries.

The minister further mentioned concerns regarding the current visa status for the UAE, noting that even some top Nigerian government officials had raised their concerns.

She also pointed out that a joint commission between the two countries was due after the one hosted by the UAE in 2022.

Odumegwu-Ojukwu expressed appreciation to the UAE government for their recent donation of relief materials to flood victims in Nigeria, as well as vaccines for chickenpox patients to support Nigeria’s health institutions.

“There is a need to communicate the new visa policy, if any, to Nigerians.

“We want to reciprocate by hosting the joint commission in Nigeria, where we will address various bilateral issues, including power, renewable energy, and more,” she said.

Alshamsi congratulated Odumegwu-Ojukwu on her appointment and lauded the progress made in the 50-year Nigeria-UAE relationship.

He acknowledged that visas for both government officials and private individuals had been issued over the past year and a half, with the process handled by an appointed agent.

He assured that the UAE was committed to resolving the visa challenges faced by Nigerians and emphasised that both countries would work together to foster stronger economic partnerships.

“We have issued more than 700 tourism visas since July 2024, and I have had zero visa rejections since I assumed office,” Alshamsi stated.

He also promised to continue signing agreements to further strengthen bilateral ties, with a major agreement expected to be signed ahead of the Nigerian president’s visit to the UAE in the second quarter of 2025.

Nigeria, UAE meet over visa restrictions

(NAN)

Continue Reading

News

Only Anambra rejected bad W”Bank loan, 35 states shared $438m – Soludo

Published

on

Anambra State Gov, Professor Charles Chukwuma Soludo

Only Anambra rejected bad W”Bank loan, 35 states shared $438m – Soludo

Governor of Anambra State, Prof. Charles Soludo, has stated that he pulled the state out of the World Bank loan arrangement because it is not of Anambra’s interest.

Soludo made this revelation over the weekend when the leadership of the late Ifeanyi Ubah political groups, along with some Nollywood actors and actresses, toured the ongoing construction of the Government House in Awka North Local Government Area.

Addressing the groups, the governor said Anambra is the only state in Nigeria that pulled out of the existing World Bank loan arrangement.

According to him, the terms and conditions of the loans were not favorable to the people of Anambra.

“When I came in as governor and looked at the terms and conditions of those loans, I said it was not favorable to our people. This is a bad deal for my people. However, one could say, ‘Let me collect the loans; after all, it is the next generation that will pay.’ I don’t have that kind of conscience. I felt the terms were a bad deal for Ndi Anambra, and I told them we don’t need it. Late last year, they shared 438 million dollars among 35 states in Nigeria, but Anambra State was the only state that did not collect. We don’t need to continue to mortgage the state with such loans,” he said.

READ ALSO:

Soludo emphasized that he needs money to fund government projects, but not the kind that mortgages the future of the state and its unborn children.

He also pointed out that Anambra State is the only state in Nigeria where the governor’s lodge is located outside the capital, and the government house has been in a makeshift building provided by a construction company for 34 years.

According to him, the present government house is owned by the company that constructed the Enugu-Onitsha expressway.

Soludo further stated that for 34 years, Anambra had no government house and no governor’s lodge.

However, the state is building one of the best government houses, with 34 buildings sitting on 23 heactres of land, noting that the building can last for 250 years.

He also disclosed that he has not borrowed any money to fund the construction of the ongoing government house and other projects in the state, adding that any money handed to him on behalf of the state must be judiciously utilized for the good of the people of Anambra State.

 

Only Anambra rejected bad W”Bank loan, 35 states shared $438m – Soludo

Continue Reading

Trending