2025 Appropriation bill targets N34.8trn revenue, targets debt restructuring, fiscal management

The Federal Executive Council (FEC) has approved Nigeria’s 2025 Appropriation Bill, targeting N34.8 trillion in revenue and outlining a comprehensive debt restructuring strategy to support critical infrastructure development.

This approach forms part of the 2025-2027 Medium-Term Fiscal Framework and Fiscal Strategy Paper (MTEF/FSP), which will be submitted to the National Assembly as lawmakers return from a two-week recess.

The government’s ambitious revenue goals are projected to come from oil taxes (N19.6 trillion), non-oil taxes (N5.7 trillion), Government-Owned Enterprises (N2.87 trillion), independent revenue sources (N3.6 trillion), and other channels (N4.8 trillion). Expenditures are set at N47.9 trillion, comprising non-debt recurrent spending (N14.2 trillion), capital expenditure (N16.4 trillion), debt service (N15.38 trillion), and other costs (N2 trillion).

Acknowledging challenges such as low oil revenues, high subsidy costs, and revenue mobilization difficulties, the government has implemented reforms, including petrol subsidy removal and tax waiver reductions. Moving forward, cheaper borrowing options and revenue enhancement measures will be prioritized.

Key measures include prioritizing existing projects, reducing administrative costs, enhancing treasury controls, and tightening fiscal incentives. National security remains a top priority, with investments directed toward equipment, personnel welfare, and cybersecurity, aiming to create a safer environment for economic and social activities.

Economic projections for 2025-2027 include a targeted growth rate of 3.68% and inflation reduction from 32.8% in 2024 to 16.94% in 2025. The Central Bank of Nigeria plans to stabilize the naira at N1,400/$, contingent on economic reforms. The government will also focus on expanding non-oil revenue streams and strengthening tax administration.