Tinubu Signs ₦54.99 Trillion 2025 Budget Into Law

President Bola Tinubu has signed the ₦54.99 trillion 2025 Appropriation Bill into law.

He approved the budget on Friday during a brief ceremony at the State House in Abuja, attended by principal officers of the National Assembly and top government officials.

The National Assembly passed the bill on Thursday, February 13, after increasing Tinubu’s initial proposal of ₦54.2 trillion. The additional funds are expected to come from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.

The budget prioritizes key sectors, including security, infrastructure, education, and health, with a $200 million allocation to mitigate the impact of recent U.S. health aid reductions.

It is based on economic projections, including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel. The government also expects an exchange rate of ₦1,500 per U.S. dollar and aims to reduce inflation from 34.8% to 15% within the year.

A major aspect of the fiscal plan is tax reform, which includes a proposed increase in value-added tax to 12.5% by 2026 while exempting essential goods like food and medicine. The reform also seeks to redistribute VAT revenues in favor of states that generate more, a move that has sparked debate over regional economic disparities.

The 2025 budget represents a 99.96% increase from the ₦27.5 trillion budget of 2024.