Budget and Economic Planning Minister Senator Atiku Bagudu has announced the Federal Government’s target to generate ₦36.35 trillion in revenue for the 2025 fiscal year, as part of the ₦49.7 trillion Appropriation Bill.
Bagudu outlined key strategies to achieve this ambitious target, including strengthening revenue-generating agencies, blocking financial leakages, maximizing gains from fuel subsidy removal, and floating the naira. Speaking before the National Assembly’s Joint Committees on Finance, Bagudu expressed confidence in meeting the revenue target, emphasizing the importance of President Bola Ahmed Tinubu’s directives to revenue-generating Ministries, Departments, and Agencies (MDAs) and Government-Owned Enterprises (GOEs).
Revenue Growth and Economic Measures
Bagudu highlighted significant revenue-saving measures implemented by the Tinubu administration, such as market-based pricing for Premium Motor Spirit (PMS) and foreign exchange policy adjustments, which saved approximately ₦930 billion in 2024.
“These bold and courageous steps are intended to correct economic distortions, improve expenditure efficiency, and generate more revenues for all tiers of government,” Bagudu stated.
Efforts to increase oil production at reduced costs and address electricity pricing distortions are also expected to drive additional revenue growth.
Budget Assumptions and Projections
The 2025 budget assumptions include:
- Crude oil production: 2.06 million barrels per day
- Oil price benchmark: $75 per barrel
- Exchange rate: ₦1,500 per dollar
- Inflation rate: 15.75%
- GDP growth rate: 4.6%
Despite a projected deficit of ₦13.08 trillion, Bagudu is optimistic that lessons learned from the 2024 budget will help achieve the revenue targets.
Collaboration Between Government Arms
Bagudu commended the collaboration between the Executive and Legislature, noting that the seamless partnership is crucial for implementing the government’s fiscal strategy.
Finance Minister Wale Edun also expressed confidence in the administration’s economic policies, citing Nigeria’s GDP growth of over 3% in 2024 as evidence of progress. He highlighted the performance of revenue-generating agencies like the Nigeria Customs Service and the Federal Inland Revenue Service (FIRS) as critical drivers of growth.
“Our focus remains on growing revenues, improving fiscal discipline, and ensuring sustainable economic growth for all Nigerians,” Edun said.
The government aims to sustain its reforms and economic policies to achieve the ambitious revenue target and ensure the effective allocation of resources.
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