Stakeholders Call For Comprehensive  Implementation Of The 2025 Budget

The Minister of Budget and Economic Planning, Atiku Bagudu, has set the tone for the fiscal year, with stakeholders acknowledging the ambitious nature of the 2025 budget and urging a comprehensive implementation plan.

Stakeholders stress the need for collective efforts to successfully execute the N54.99 trillion 2025 budget, which President Bola Tinubu recently signed in order to reshape the economy. The stakeholders when  interviewing described the budget as “ambitious.”

The budget breakdown reveals an estimated revenue of N40.89 trillion and a deficit of N14.1 trillion, which the government aims to cover through increased oil sales, tax collection, and other strategies. Concerns have been raised about the feasibility of financing the deficit.

main  assumptions for the 2025 fiscal year include 2.12 million barrels per day of oil production, a $75 oil price, an exchange rate of N1,500, 4.6% GDP growth, and a 15% inflation rate.

Prof. Segun Ajibola, former president of the Chartered Institute of Bankers of Nigeria (CIBN), observed that while the 2025 budget reflects the government’s “desperate moves to reposition the economy,” it is still achievable.

Dr. Ayo Teriba, CEO of Economic Associates, emphasized the need for optimism and called for giving the budget’s executors the benefit of the doubt, noting that they are privy to facts that the public may not be aware of. He expressed skepticism about the financing of the budget, suggesting that the government has not made sufficient progress in exploring new revenue sources or implementing tax reforms.

Ministry of Budget and Economic Planning’s Role:

The Ministry of Budget and Economic Planning, led by Bagudu, plays a key role in executing the administration’s 8-point “Renewed Hope Agenda,” which includes food security, poverty eradication, economic growth, job creation, access to capital, inclusion, rule of law, and anti-corruption.

Bagudu’s role extends beyond budget formulation to setting national economic priorities, coordinating their implementation, and ensuring that budget allocations align with goals for economic recovery.

In an affirmation , it was highlighted that in less than two years as budget minister, Bagudu has worked to actualize President Tinubu’s Renewed Hope Agenda. His leadership has focused on fiscal efficiency and positioning Nigeria for long-term economic sustainability. Bagudu is tasked with designing policies that promote economic inclusivity and social justice to ensure national unity and stability.

The Minister has emphasized that the government is working hard to implement the 2025 budget effectively, noting that the benefits of fiscal policies are already starting to show. He has aligned national budgets with the president’s development strategy, ensuring smooth passage of the 2023 supplementary budgets and 2024 fiscal estimates, securing their approval with minimal resistance.

Bagudu has been instrumental in stabilizing Nigeria’s budget framework, ensuring prudent resource allocation, and playing a critical role in reducing the fiscal deficit. He has also been praised for his leadership in securing timely submission of the 2024 budget, which aimed to reduce the deficit, increase capital expenditure, and support vulnerable populations. Notable allocations included N4.06 trillion for infrastructure, N3.5 trillion for education, and N2.4 trillion for healthcare—marking the highest allocation for the sector since 2001.

The Ministry’s fiscal strategy led to sustained GDP growth, exceeding 3% for three consecutive quarters. Additionally, the ministry reduced the deficit-to-GDP ratio from 6.1% in 2023 to under 4% in 2024.

Bagudu’s efforts in championing tax reforms to enhance revenue generation while reducing the burden on businesses have been widely acknowledged. His leadership also ensured alignment of financial projections with long-term development goals, ensuring minimal reliance on excessive borrowing.

Budget Accountability:

Ajibola emphasized the importance of assessing the implementation of the budget and ensuring that ministries, departments, and agencies are held accountable for their progress. He called for the ministry’s public assessment platform, Eyemark, to be rigorously pursued to ensure that the progress of budget implementation is regularly assessed, with remedial measures implemented when necessary.

Dr. Muda Yusuf, Director of the Centre for the Promotion of Private Enterprise (CPPE), also highlighted the need to address the wide gap between appropriated and released funds, especially in capital budgets. He stressed that this variance undermines the credibility of the budget and hampers effective implementation.

Yusuf added that the ministry should ensure the alignment of the budget with the medium-term expenditure framework, the short-term economic plan, and the long-term national economic plan.

Bagudu reported that the ministry has engaged citizens in monitoring the budget, with over 500 federal projects tracked under the 2023 capital budget. The ministry has also introduced public audits of key projects to enhance transparency and strengthened institutions like the Fiscal Responsibility Commission and the Bureau of Public Procurement to ensure strict compliance with financial regulations.

Prioritizing Agriculture and Power:

Ajibola emphasized the importance of fiscal policy over monetary policy, particularly to address the 15% inflation rate in the budget. He suggested that tackling cost-induced inflation through support for the agricultural sector and utility providers could ease the burden on industries.

Bagudu’s leadership also saw the development of the Cassava Bioethanol Value Chain, generating over 8,000 jobs. Ajibola called for collaboration between the Ministry of Budget and Economic Planning and the Ministry of Agriculture to enhance the transportation and storage of agricultural goods to reduce waste and support farmers.

The Ministry is also focusing on critical investments in energy and infrastructure to support long-term economic stability. It is working on increasing crude oil production, optimizing natural resource revenue, and reducing import dependency. The 2025 budget includes significant investments in infrastructure, such as the completion of the Abuja-Kaduna railway, the rehabilitation of the Itakpe-Ajaokuta rail line, and the development of key highway projects.

Ajibola and Yusuf both noted that addressing challenges in the oil and gas sector, particularly in the Niger Delta, is essential for sustaining oil production targets and achieving macroeconomic stability.

Business and Human Capital Development:

The Ministry has also been focused on innovative financing mechanisms, overseeing the development of the Renewed Hope Infrastructure Fund, the National Agriculture Development Fund, the Consumer Credit Scheme, and the Student Loans Fund, among others. It has utilized geospatial analytics to improve policy planning and ensure that investments are directed to areas where they will have the greatest impact.

The Ministry is working to attract foreign direct investment into critical sectors such as energy, agriculture, and technology, as well as improving human capital development. Through initiatives like the NG-CARES program, the Ministry has provided emergency relief to over seven million vulnerable households.

Stakeholders agree that Bagudu’s leadership is pivotal in steering Nigeria toward economic recovery, and they emphasize the need for alignment between key planning instruments and a strong commitment to effective budgeting and implementation.

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