President Bola Tinubu has officially signed into law the ₦54.99 trillion 2025 Appropriation Bill.
The signing took place in a small ceremony at the State House, Abuja, on Friday, 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 initially proposed ₦49.7 trillion.
The final budget, approved at ₦54.99 trillion ($36.6 billion), exceeded Tinubu’s earlier proposal of ₦54.2 trillion. This increase is based on anticipated additional revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
The budget prioritizes critical sectors, including security, infrastructure, education, and health. A notable allocation of $200 million has been designated to mitigate the impact of recent U.S. health aid reductions.
The 2025 budget is built on ambitious economic assumptions, including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel.
Additionally, the Federal Government projects an exchange rate of ₦1,500 to the U.S. dollar and aims to reduce inflation from 34.8 percent to 15 percent within the year.
A key component of the fiscal strategy involves tax reforms aimed at boosting revenue generation and ensuring economic stability.
The proposed tax overhaul includes increasing the value-added tax to 12.5 percent by 2026 while exempting essential goods such as food and medicine to alleviate the financial burden on households.
Furthermore, the reform suggests reallocating VAT revenues to favor states that generate more, a move that has sparked discussions regarding regional economic disparities.
The 2025 Appropriation Act represents a 99.96 percent increase from the 2024 Budget of ₦27.5 trillion.
