BREAKING: President Tinubu signs N54.99trn 2025 Budget into law

President Bola Tinubu has officially signed the 2025 Appropriation Bill, amounting to ₦54.99 trillion, into law.

The signing took place on Friday at the State House, Abuja, in the presence of principal officers of the National Assembly and other top government officials.

The National Assembly had passed the bill on Thursday, February 13, following Tinubu’s request for an increase from the earlier proposed ₦49.7 trillion. The approved budget exceeded his initial proposal of ₦54.2 trillion, reflecting additional expected revenue from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.

The budget prioritizes key sectors like security, infrastructure, education, and health, with a specific allocation of $200 million to cushion the effects of recent U.S. health aid reductions.

It is based on several economic projections, including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel. The government also forecasts an exchange rate of ₦1,500 to the U.S. dollar and aims to reduce inflation from 34.8% to 15% within the year.

A major component of the fiscal plan includes tax reforms aimed at improving revenue generation and economic stability. Tinubu’s proposed tax overhaul involves increasing the value-added tax (VAT) to 12.5% by 2026, while exempting essential goods such as food and medicine to reduce the financial strain on households. The plan also suggests reallocating VAT revenues to benefit states that generate more, a move that has sparked discussions about regional economic imbalances.

The newly signed 2025 budget marks a significant 99.96% increase from the 2024 budget of ₦27.5 trillion.