As Nigeria anticipates President Bola Ahmed Tinubu GCFR’s presentation of the 2025 Federal Government budget to the National Assembly, economists are urging fiscal discipline and realistic assumptions to drive meaningful economic growth.
The proposed N47.9 trillion budget, approved by the Federal Executive Council (FEC) in November 2024, is based on key assumptions, including:
- Exchange rate: N1,400/$
- Crude oil benchmark: $75 per barrel
- Crude oil production: 2.06 million barrels per day
- GDP growth: 4.6%
- Inflation rate: 15.8%
Expert Critiques
Prof. Bongo Adi – Lagos Business School
Adi critiqued the budget’s assumptions, particularly regarding the exchange rate, as unrealistic. He called for reducing governance costs, curbing waste, and eliminating duplication to improve fiscal efficiency without increasing taxes or borrowing.
Prof. Adeola Adenikinju – Nigerian Economic Society (NES)
Adenikinju highlighted concerns over crude oil benchmarks and production targets, labeling the latter as overly optimistic. He noted the importance of aligning production with OPEC quotas and focusing government spending on key sectors for sustainable growth. The NES projects a GDP growth of 3.8% and an exchange rate ceiling of N1,800/$, reflecting anticipated macroeconomic pressures.
Dr. Ogho Okiti – Think Business Africa
Dr. Okiti emphasized the need for a progressive fiscal framework to address deficits and reduce borrowing. He stressed prioritizing investments in infrastructure, education, and healthcare to spur long-term economic growth.
The Nigeria Economic Summit Group (NESG) reinforced the importance of aligning fiscal and monetary policies with trade and social investment initiatives. Such synergy, they argue, is critical to easing the economic burden on Nigerian households and fostering sustainable development.
Experts have urged the National Assembly to rigorously evaluate the budget proposal, ensuring that it adheres to conservative fiscal practices and focuses on achievable targets. As Nigeria grapples with global economic uncertainties, the 2025 budget is poised to play a pivotal role in shaping the nation’s economic stability and growth trajectory.
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