By Ade Iyamoye
President Bola Ahmed Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law, setting a new record as Nigeria’s largest budget.
The signing took place on Friday at the State House, Abuja, in the presence of principal officers of the National Assembly and top government officials.
The budget, initially proposed at ₦54.2 trillion, was increased after the National Assembly considered additional revenue projections from agencies such as the Federal Inland Revenue Service (FIRS), and the Nigeria Customs Service.
This marks a significant jump from the ₦27.5 trillion budget of 2024, reflecting the administration’s ambitious fiscal strategy.
Designed to drive national development, the budget prioritizes security, infrastructure, education, and healthcare, with $200 million allocated to cushion the impact of reduced U.S. health aid.
It is anchored on economic assumptions, including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel.
The government also projects an exchange rate of ₦1,500 per U.S. dollar and aims to cut inflation from 34.8 percent to 15 percent within the year.
A key feature of the budget is an extensive tax reform plan aimed at boosting revenue and stabilizing the economy.
Tinubu’s administration has proposed raising the Value-Added Tax (VAT) to 12.5 percent by 2026, while exempting essential goods like food and medicine to ease the burden on citizens.
Additionally, a proposal to redistribute VAT revenues in favor of states that generate more has sparked debate over economic disparities among regions.
By signing the ₦54.99 trillion budget into law, Tinubu has signaled his commitment to economic reforms and national development, despite the challenges of rising inflation and currency fluctuations.
