The Federal Government has approved the Medium Term Expenditure Framework (MTEF) for 2025-2027, alongside the Fiscal Strategy Paper.
The proposed budget for 2025 stands at N47.9 trillion, with new borrowings of N9.22 trillion to finance the budget deficit.
Minister of Budget and Economic Planning, Abubakar Bagudu, revealed these details following the Federal Executive Council meeting at the Aso Rock Villa in Abuja on Thursday. He confirmed that the Council would transmit the framework to the National Assembly by mid-November.
The MTEF outlines key economic parameters for the 2025 budget, including an oil price benchmark of $75 per barrel, oil production of 2.06 million barrels per day, and an exchange rate of N1400 to $1.
The budget’s total expenditure is pegged at N47 trillion, with a borrowing plan of N13.8 trillion, representing 3.87% of the projected GDP. Bagudu also highlighted provisions for development commissions, marking the first time such allocations are included in the budget.
Bagudu further emphasized that the MTEF reflects a review of the 2024 budget’s performance, showing positive trends in revenue collection and expenditure management.
While there have been some delays in meeting prorated targets, the minister noted that non-oil revenue streams have exceeded expectations, keeping the fiscal trajectory on course.
The approval of the MTEF signals the government’s continued commitment to sustaining market deregulation in key sectors such as petroleum pricing and exchange rates.
