By Anastasia John E. Abuja.
The Federal Government’s 2025 fiscal budget reveals a staggering N15.81 trillion earmarked for debt servicing, surpassing the combined allocations for key sectors such as defense, infrastructure, education, and health.
In his presentation to a joint session of the National Assembly, President Bola Tinubu emphasized his administration’s commitment to enhancing defense, infrastructure, education, and health as core priorities for the upcoming budget. However, the debt servicing allocation eclipses the total funding for these critical areas, which stands at N11.72 trillion—comprising N4.91 trillion for defense and security, N4.06 trillion for infrastructure, N3.5 trillion for education, and N2.4 trillion for health.
Titled “The Restoration Budget: Securing Peace, Building Prosperity,” the 2025 appropriation plan anticipates a deficit of approximately N13.08 trillion, representing 3.89% of the GDP, which will be financed through additional borrowing.
During his address, President Tinubu outlined the government’s revenue target of N34.82 trillion to support the budget. The proposal also forecasts a reduction in inflation from the current rate of 34.6% to 15% next year, alongside an improved exchange rate, projected to shift from roughly N1,700 to N1,500 per US dollar. Additionally, the budget estimates crude oil production at 2.06 million barrels per day, with oil prices set at $75 per barrel.
