The Nigerian government will borrow to finance the N13 trillion deficit in the N48 trillion 2025 budget, according to Mr. Wale Edun, the Minister of Finance and Coordinating Minister for the Economy.
Edun made this statement on Monday after the Federal Executive Council (FEC) meeting at the Presidential Villa in Abuja.
Edun explained that the total projected revenue for 2025 is N34.82 trillion, while expenditure is projected to be N47.96 trillion, a 36.8% increase from the 2024 estimate.
This results in a projected deficit of N13.14 trillion, which amounts to 3.89% of Nigeria’s GDP.
The minister emphasized that the 2025 budget is designed in line with the progress made under President Bola Ahmed Tinubu’s administration over the past 18 months.
He noted that, like many governments worldwide, Nigeria is working to achieve fiscal sustainability by balancing revenue, expenditure, and borrowing to create an environment conducive to economic growth.
Edun also highlighted the importance of private sector investment in driving economic progress, job creation, and poverty reduction.
He pointed to recent investments by major international companies like Shell and Total, which have committed billions of dollars to Nigeria, as a sign of growing investor confidence.
The minister credited the Tinubu administration for its policy reforms, particularly the market-driven pricing of petroleum products, foreign exchange, and electricity.
He also pointed out that for the first time in 25 years, Nigeria has begun domestic refining of petrol, producing not just fuel but also raw materials for various industries.
Edun stated that these efforts are contributing to improved fiscal sustainability, with a focus on government spending in critical areas while fostering an environment for private sector growth.
