President Bola Ahmed Tinubu has signed Nigeria’s 2025 Appropriation Bill into law, approving a record-breaking budget of ₦54.99 trillion. The signing ceremony took place at the State House in Abuja, with key government officials, including Senate President Godswill Akpabio and Speaker of the House of Representatives Tajudeen Abbas, in attendance. This budget is the largest in Nigeria’s history and is expected to shape the country’s economic trajectory in the coming year.
The 2025 budget saw a significant increase from the ₦49.7 trillion initially proposed by President Tinubu in December 2024. The National Assembly raised the amount before approving it on February 13, 2025. The budget allocates ₦3.65 trillion for statutory transfers, ₦13.64 trillion for recurrent (non-debt) expenditure, ₦23.96 trillion for capital expenditure, and ₦14.32 trillion for debt servicing. The fiscal deficit is projected at 1.52% of GDP, reflecting the government’s strategy to balance spending with economic realities.
This budget represents a sharp 99.96% increase from the ₦27.5 trillion allocated in 2024, signaling the administration’s intent to aggressively tackle infrastructure, social programs, and economic reforms. The rise in capital expenditure suggests a focus on developmental projects, including roads, power, and healthcare. However, the significant debt servicing allocation underscores Nigeria’s ongoing fiscal challenges, as borrowing continues to play a major role in funding government activities.
Despite its ambitious size, the success of the 2025 budget will depend on effective implementation and revenue generation. The government will need to boost non-oil revenues, improve tax collection, and ensure transparency in public spending. Economic experts have cautioned that without strong fiscal discipline, the increased expenditure could lead to inflationary pressures and further strain Nigeria’s already burdened debt profile.
With the 2025 budget now signed into law, all eyes are on the Tinubu administration to deliver on its promises. Nigerians will be watching closely to see how the government manages the country’s resources and whether the budget will translate into tangible improvements in infrastructure, job creation, and overall economic stability. The coming months will be crucial in determining whether this record-breaking budget brings the expected benefits or exacerbates existing economic challenges.
