​The Nigerian government has approved a ₦54.99 trillion ($36.6 billion) budget for the 2025 fiscal year, marking a significant increase from the initially proposed ₦49.7 trillion. This expansion reflects the administration’s efforts to bolster revenue and address pressing national needs.​Reuters

Key Highlights of the 2025 Budget

• Budget Title: “The Restoration Budget: Securing Peace, Rebuilding Prosperity”
• Total Approved Budget: ₦54.99 trillion ($36.6 billion)
• Initial Proposal: ₦49.7 trillion
• Budget Deficit: Approximately ₦13 trillion, representing 3.89% of the estimated GDP ​impactngr.com+2placng.org+2Economic Times+2Reuters+3Reuters+3Reuters+3

Revenue Projections

The upward revision of the budget is attributed to increased revenue projections from key government agencies:​Reuters+1okay.ng+1

• Federal Inland Revenue Service (FIRS): ₦1.4 trillion
• Nigeria Customs Service (NCS): ₦1.2 trillion
• Other Government Agencies: ₦1.8 trillion ​Budget Office of the Federation+10Financial Times+10placng.org+10Reuters

Sectoral Allocations

The budget prioritizes several critical sectors:​Financial Times+3Vanguard News+3NISIR+3

• Defense and Security: ₦5.43 trillion (9.87%)
• Infrastructure: ₦4.47 trillion (8.16%)
• Education: ₦3.89 trillion (7.08%)
• Health: ₦2.74 trillion (4.99%) ​NISIR

Notably, allocations to defense, education, and health have seen reductions compared to previous budgets, prompting discussions on the implications for national development.​NISIR

Fiscal Strategies and Reforms

To enhance fiscal sustainability, the government has implemented several measures:​Reuters

• Electricity Subsidy Reduction: A 35% cut in electricity subsidies following a targeted tariff hike for high-usage consumers, generating an additional ₦700 billion in revenue and reducing the tariff shortfall from ₦3 trillion to ₦1.9 trillion
• Tax Reforms: Plans to nearly double the Value Added Tax (VAT) to 12.5% by 2026, with exemptions for essential items like food and medicine, aiming to reduce inflation from 34.8% to 15% ​ReutersReuters

Social Interventions

In response to the suspension of U.S. health aid, Nigerian lawmakers have approved an additional $200 million for the health sector to mitigate the impact, focusing on vaccine supply and epidemic disease treatment .​AP News+1Reuters+1

Future Outlook

Renowned constitutional lawyer Dr. Olisa Agbakoba has advocated for a bold ₦500 trillion national budget by 2026/27, emphasizing the need for innovation and legal policy reforms to unlock Nigeria’s economic potential .​Vanguard News

For a detailed breakdown of the 2025 budget, you can access the full document here: The Budgit Foundation.

Recent Developments in Nigeria’s 2025 Budget

Reuters

Nigeria cuts electricity subsidies by 35% after tariff hike

5 days agoReutersNigeria’s president increases 2025 budget to $36.4 billion76 days agoReutersNigeria’s parliament approves $36.6 bln budget for 202568 days ago