By Abigail Philip David
President Bola Tinubu has officially signed the N54.99 trillion 2025 Appropriation Bill into law.
The signing took place on Friday at a brief ceremony in his office at the State House, Abuja, attended by principal officers of the National Assembly and senior government officials.
The budget, which was passed by both chambers of the National Assembly on Thursday, February 13, exceeds Tinubu’s initial proposal of N54.2 trillion due to additional projected revenues from agencies such as the Federal Inland Revenue Service (FIRS) and Nigeria Customs Service.
Key Budget Highlights
- Focus Areas: The budget prioritizes security, infrastructure, education, and health. Notably, $200 million has been earmarked to counter the effects of recent U.S. health aid reductions.
- Oil & Economy Projections: It is based on a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel.
- Exchange Rate & Inflation: The Federal Government anticipates an exchange rate of ₦1,500 per U.S. dollar and aims to bring inflation down from 34.8% to 15% within the year.
Tax & Revenue Reforms
The budget incorporates significant tax reforms aimed at boosting revenue and stabilizing the economy. These include:
- A planned increase in Value-Added Tax (VAT) to 12.5% by 2026, with exemptions for essential goods such as food and medicine to cushion the impact on households.
- A new VAT revenue allocation formula that favors states generating more revenue, a move that has sparked debate over regional economic disparities.
The 2025 Appropriation Act represents a 99.96% increase from the 2024 budget of N27.5 trillion, making it the largest in Nigeria’s history.
