Bagudu charges MDAs, GOEs on 2025 revenue target

The Minister of Budget and Economic Planning, Abubakar Bagudu, has urged revenue-generating ministries, departments and agencies (MDAs) as well as government-owned enterprises (GOEs) to intensify their efforts to help achieve the government’s N36.35 trillion revenue target for 2025.

Speaking yesterday at the National Assembly’s Joint Committees on Finance hearing on the 2025 Appropriation Bill, Bagudu expressed optimism about the gains from President Bola Tinubu’s economic reforms, which he noted were already yielding results.

The minister highlighted the directive given to GOEs in 2024 to increase revenue generation, stressing the need for compliance with the President’s call for improved performance in 2025.

Bagudu attributed the improved revenue inflow to the removal of fuel and foreign exchange subsidies, which he said had begun to positively impact the finances of the three tiers of government as of October last year.

He further emphasised that savings from these reforms are expected to sustain an upward revenue trajectory.

Bagudu also noted that the government’s efforts to increase oil production while reducing production costs would significantly bolster the national treasury.

Following the National Assembly’s approval of the 2025 Medium Term Expenditure Framework and Fiscal Strategy Paper, President Tinubu presented the 2025 Appropriation Bill in December 2024.

The proposed budget, amounting to N49.74 trillion, is based on key assumptions, including daily oil production of 2.06 million barrels, an oil price benchmark of $75 per barrel, an exchange rate of N1,500/$, a 15.75% inflation rate, and a projected GDP growth rate of 4.6 per cent.

Despite the N13.08 trillion deficit, Bagudu assured lawmakers of the administration’s ability to generate the required revenue to fund the budget.

“The 2024 budget was the administration’s first full-year budget, and the lessons learned from its implementation have informed the assumptions and strategies for 2025,” Bagudu stated.

He highlighted critical reforms such as the removal of fuel subsidies, deregulation of the foreign exchange market and addressing price distortions in sectors like electricity.

These measures, he explained, aim to generate more revenue, correct economic distortions, and improve expenditure efficiency.

“All the bold and courageous steps taken, with the support of the National Assembly, are designed to enhance revenue generation for the three tiers of government and ensure more efficient use of public funds,” he added.

Bagudu reassured legislators that, despite the lingering effects of past subsidy regimes, the administration had gained valuable insights from the 2024 budget implementation, which strengthened its confidence in achieving the 2025 revenue targets.

The Chairmen of the Joint Committees, Senator Mohammed Sani Musa and Hon. James Faleke, commended the minister for his comprehensive presentation and expressed hope that MDAs would fully cooperate with the committee in executing its oversight responsibilities.