FG to Borrow N13 Trillion to Fund 2025 Budget Deficit – Edun

The Federal Government plans to finance the N13 trillion deficit in the proposed N48 trillion 2025 budget through borrowing, according to Mr. Wale Edun, the Minister of Finance and Coordinating Minister for the Economy.

Addressing State House correspondents in Abuja after the Federal Executive Council (FEC) meeting on Monday, Edun disclosed that the total projected revenue for 2025 is N34.82 trillion, while expenditure is pegged at N47.96 trillion, representing a 36.8% increase from the 2024 budget estimate.

“The deficit of N13.14 trillion accounts for 3.89% of the Gross Domestic Product (GDP),” Edun explained, adding that the budget is designed to align with the progress made under President Bola Tinubu’s administration over the past 18 months.

Speaking on the broader context of the budget, Edun emphasized fiscal sustainability as a key goal. “Like governments around the world, we are focused on achieving a balance between revenue, expenditure, and borrowing. This will create an environment conducive to economic growth,” he stated.

He highlighted the importance of private sector investments in driving economic development. “Private sector-led economies, including ours, depend on investments to boost productivity, generate employment, and lift citizens out of poverty,” Edun noted.

Edun detailed some of the administration’s economic reforms, including the deregulation of petroleum product pricing, foreign exchange adjustments, and efforts to enhance electricity pricing. These measures, he said, have improved fiscal stability and spurred interest from international investors.

“Shell recently announced a $5 billion investment, and Total is committing billions of dollars as well. These are signs of growing confidence in our economy,” he remarked, adding that other multinational companies are also exploring investment opportunities in Nigeria.

Edun further noted that the local refining of petroleum products, achieved for the first time in 25 years, is another milestone of Tinubu's government. "This development does not only ensure fuel availability but also provides raw materials for industries, ranging from pharmaceuticals to textiles and building products," he added.

Edun stressed that the 2025 budget prioritizes government spending in critical areas while fostering an enabling environment for private sector investments. He observed, “This budget goes beyond expenditure; it seeks to catalyze private sector participation in key sectors, ensuring long-term economic benefits.”

In his concluding remarks, Edun praised the administration’s achievements and underscored the need for sustained reforms. “Even European countries are grappling with similar macroeconomic challenges. We are making significant progress and positioning Nigeria for sustainable growth,” he said.