2025 budget: Reps okay $75 oil price, 2.06 mbpd crude production, N1,400/dollar

Ahead of the presentation of the 2025 Appropriation Bill by President Bola Ahmed Tinubu, the House of Representatives has approved a $75 oil sale benchmark price.

Adopting the recommendation of the report of Mr. James Abiodun Faleke-led committees on Finance and National Planning and Economic Development on the 2025–2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Paper (FSP) at plenary presided by the Deputy Speaker, Benjamin Kalu, the lawmakers also approved $76.2 and $75.3 per barrel for the 2026 and 2027 fiscal years, respectively.

The lawmakers also approved the three-year projections for domestic crude oil production with a significant increase from 1.78 mbpd to 2.06, 2.10, and 2.35 for 2025, 2026, and 2027.

Besides, the House endorsed a projected GDP growth rate of 4.6%, 4.4% and 5.5% for years 2025, 2026, and 2027, and the projected exchange rate, which stands at N1400/USD for years 2025, 2026, and 2027, subject however to review in early 2025 according to monetary and fiscal policies.

The House also approved the inflation rate projections of 15.75%, 14 21%, and 10 04% for years 2025, 2026, and 2027.

The House noted that based on the criteria in the overview of the framework for revenues and expenses, the 2025 Federal Budget proposed spending is to stand at NGN47. 9 trillion, of which NGN34. 82 trillion was retained.

It added that new borrowings stood at N9.22 trillion, which constitutes domestic and foreign borrowings, just as debt service was valued at N15. 38 trillion; pensions, gratuities, and retirees benefits stood at N1.443 trillion; and the fiscal deficit stood at N13.08 trillion.

The House, among others, agreed that the capital expenditure is projected at N16. 48 trillion, which is exclusive of transfers; statutory transfers stand at N4 26 trillion; and the sinking fund is projected at N430.27 billion.

The House also approved the respective figures for total recurrent (non-debt) at N14.21 trillion; special intervention for recurrent and capital is at N200 billion and N7 billion.

The House approved the promissory note program and bond issuance to set the outstanding claims and liabilities of the federal government owed to states, high priority judgements, and liabilities incurred by federal ministries, departments, and agencies on behalf of the government.