NewsOnline Nigeria reports that President Bola Ahmed Tinubu has officially enacted the ₦54.99 trillion 2025 Appropriation Bill into law.
This Nigeria news platform understands that the National Assembly approved the bill on February 13, 2025, following an increase from the original amount of ₦49.7 trillion proposed by President Tinubu.
The signing took place during a short ceremony in the President’s office on Friday.
The 2025 Appropriation Act signifies a remarkable 99.96% rise compared to the 2024 Budget, which was set at ₦27.5 trillion.
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This increase signifies the expected rise in revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
The budget is designed to tackle critical sectors, including security, infrastructure, education, and health, with a provision of $200 million aimed at offsetting the effects of recent reductions in U.S. health assistance.
The 2025 budget is predicated on ambitious economic projections, targeting crude oil production at 2.06 million barrels per day, with a benchmark price set at $75 per barrel.
Furthermore, the Federal Government anticipates an exchange rate of ₦1,500 to the U.S. dollar and aims to decrease inflation from 34.8 percent to 15 percent within the year.
A key element of the fiscal strategy includes tax reforms, which President Tinubu asserts are intended to bolster revenue generation and promote economic stability.
The proposed tax reform entails raising the value-added tax to 12.5 per cent by 2026 while exempting essential items such as food and medicine to ease the financial burden on households.
Additionally, the reform suggests reallocating VAT revenues to benefit states that contribute more, a proposal that has ignited discussions regarding regional economic inequalities.
The 2025 Appropriation Act reflects a 99.96 per cent increase compared to the 2024 Budget of ₦27.5 trillion.