Tinubu Unveils Nigeria's N47.9 Trillion 2025 Budget with Bold Economic Projections

Nigeria's President, Bola Tinubu, has presented a N47.9 trillion ($30 billion) budget for 2025 to Parliament, marking his second budget since assuming office.

The proposal is built on key assumptions, including a benchmark oil price of $75 per barrel and a daily oil production target of just over 2 million barrels. However, analysts warn that this production target may be difficult to achieve due to persistent issues like sabotage and aging infrastructure. As Africa’s leading crude oil producer, Nigeria's budgets heavily rely on oil sales, which account for about 90% of its foreign exchange earnings.

The budget also projects a significant reduction in inflation, from the current rate of over 34% to 15% by next year. However, Ibukun Omoyeni, an economist at Lagos-based Vetiva Capital, described this forecast as "optimistic." He cautioned that actual inflation could exceed the government's estimate, potentially necessitating a supplementary budget later.

Despite the challenges, Tinubu described the 2025 budget as “ambitious but necessary” for Nigeria's economic future. His administration’s economic policies, which have so far driven up the cost of living, remain a point of contention among citizens and analysts alike.