2025 Budget: N13trn Deficit To Be Financed Through Borrowing – Finance Minister

The Federal Executive Council (FEC) has approved Nigeria’s 2025 budget, which projects a deficit of N13.1 trillion, representing 3.89% of GDP. Finance Minister and Coordinating Minister for the Economy, Wale Edun, disclosed this after a meeting at the Presidential Villa in Abuja. With a total expenditure of N47.9 trillion against expected revenues of N34.8 trillion, the shortfall will be financed through borrowing. Mr. Edun emphasized that the budget reflects progress made under President Bola Tinubu’s administration, alongside efforts to achieve fiscal sustainability and drive economic growth.

Mr. Edun highlighted policies designed to create a market-driven economy, including deregulating petroleum product pricing and improving electricity tariffs. He noted that these reforms, coupled with foreign investment initiatives, have spurred interest from global corporations like Shell and Total, which have announced multi-billion-dollar projects in Nigeria. Such investments are expected to boost productivity, create jobs, and drive private-sector-led economic growth while tackling poverty.

The Finance Minister also pointed to domestic advancements, such as Nigeria’s first local petroleum refining in 25 years, which now provides raw materials for various industries, including pharmaceuticals and textiles. He acknowledged the challenges of balancing fiscal reforms with economic stability, a struggle shared by many global economies. However, he stressed that the 2025 budget aims to channel spending into critical areas while creating opportunities for increased private-sector participation in driving sustainable economic development.