The Federal Government has approved the Medium-Term Expenditure Framework (MTEF) for 2025-2027, setting a proposed budget of N47.9 trillion for 2025, with new borrowings of N9.22 trillion to address the budget deficit, as announced by the Minister of Budget and Economic Planning, Abubakar Bagudu. This MTEF, a key fiscal tool, outlines economic assumptions like a $75 oil price benchmark, 2.06 million barrels per day oil production target, N1,400 to USD exchange rate, and 4.6% GDP growth.
Bagudu explained that the framework aims to balance inflation control, economic resilience, and targeted support for high-employment sectors. He emphasized ongoing work with the National Assembly to maintain the January-December budget cycle, stating, “President Tinubu’s administration is committed to transparency and cooperation.”
On the 2024 budget performance, Bagudu noted spending has reached N16.98 trillion out of a prorated target of N23.37 trillion, with significant allocations to debt service, personnel costs, and capital projects.
