2025 Budget: Nigeria to Borrow N13trn to Cover Deficit
The Minister of Finance and Coordinating Minister for the Economy, Mr Wale Edun, has revealed that the N13 trillion deficit in Nigeria’s N48 trillion 2025 budget will be financed through borrowing.
Speaking to State House correspondents after the Federal Executive Council (FEC) meeting on Monday at the Presidential Villa, Abuja, Edun outlined the government’s fiscal strategy amidst economic challenges.
“The total projected revenue for 2025 is N34.82 trillion, while expenditure is projected at N47.96 trillion, representing a 36.8% increase from the 2024 estimate,” he disclosed. “The resulting deficit of N13.14 trillion represents 3.89% of GDP.”
Edun stated that the budget aligns with the government’s vision of achieving fiscal sustainability and fostering a private sector-driven economy. “We, like governments around the world, are concerned about how to achieve fiscal sustainability—revenue to expenditure and borrowing that is balanced—to create an environment in which the economy can grow,” he said.
The Tinubu administration, Edun noted, has implemented policies to encourage economic reforms, including market pricing of petroleum products, adjustments in foreign exchange rates, and improvements in electricity pricing.
Highlighting recent progress, he said, “Shell announced a $5 billion investment, and Total announced a multi-billion dollar investment. Many others are expressing interest in investing in Nigeria.”
Edun emphasised that the government’s spending would focus on critical sectors, while creating room for private sector investment. “This budget is based on government spending in critical areas, but more importantly, on encouraging private sector investment,” he remarked.
He further pointed to significant achievements, such as the domestic refinement of petrol for the first time in 25 years. “This not only ensures petrol production but also provides raw materials for industries ranging from pharmaceuticals to textiles,” he said.
As the government seeks to balance its ambitious spending with borrowing, it remains to be seen how the fiscal measures will impact Nigeria’s economic trajectory in the coming year.
