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Nigerian govt targets N36.35tn revenue for 2025

The Federal Government has set an ambitious revenue target of N36.35 trillion for 2025.
Speaking confidently during a National Assembly hearing on the 2025 Appropriation Bill on Monday, Minister of Budget and Economic Planning, Abubakar Bagudu, expressed optimism that recent reforms under President Bola Tinubu’s administration are paving the way for unprecedented financial growth.
At the heart of the government’s optimism lies a series of bold reforms, including the removal of fuel and foreign exchange subsidies—moves that have sparked both hope and controversy among Nigerians.
Bagudu highlighted how these measures, though initially painful, are already bearing fruit, with increased revenues evident in the Federation Account as early as October 2023.
“These reforms are not just about boosting revenue; they’re about correcting deep-seated distortions in our economy,” Bagudu explained. “The removal of fuel subsidies and deregulation of the foreign exchange market have significantly improved our revenue and expenditure balance, setting the stage for sustainable growth.”
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The government’s optimism is backed by a strategic plan detailed in the 2025 Medium-Term Expenditure Framework and Fiscal Strategy Paper. Key assumptions include:
– Oil production pegged at 2.06 million barrels per day.
– A conservative price estimate of $75 per barrel.
– An exchange rate of N1,500 to the dollar.
Despite a projected deficit of N13.08 trillion, the administration is confident it can cover the proposed N49.74 trillion expenditure for 2025. Bagudu emphasized that lessons from the 2024 budget—Tinubu’s first full-year fiscal plan—have informed these projections.
While the government touts the benefits of subsidy removal and deregulation, the human impact remains a pressing concern. The cost of living has surged, and citizens are grappling with skyrocketing fuel and energy prices.
Bagudu acknowledged these challenges but maintained that the long-term benefits outweigh the immediate hardships.
“These are bold, courageous steps,” he said, “and they are designed not just to generate revenue but to ensure every naira spent goes further. We understand the sacrifices Nigerians are making, but these reforms are necessary to build a stronger, more resilient economy.”
To achieve its ambitious revenue target, the administration has tasked revenue-generating Ministries, Departments, Agencies (MDAs), and Government-Owned Enterprises (GOEs) to intensify their efforts.
Tinubu has reportedly issued a directive for all hands to be on deck, urging these bodies to innovate and deliver more funds into national coffers.
Bagudu also pointed to efforts to increase oil production at lower costs as another critical revenue driver. With global oil prices fluctuating and competition stiff, Nigeria aims to maximize its resources while reducing production inefficiencies.
The government’s vision is clear: reform, restructure, and rebuild. But the road is far from easy. The projected revenue target, while ambitious, is contingent on multiple factors—global oil market dynamics, exchange rate stability, and the successful implementation of economic policies.
As Nigerians watch these reforms unfold, the question remains: will the pain of today’s sacrifices translate into the prosperity promised by tomorrow? For now, the administration is betting on its reforms to deliver a brighter economic future, with President Tinubu’s bold leadership as the driving force.
Bagudu summed it up: “These reforms are challenging but necessary. If we remain committed, we can transform Nigeria’s economy and ensure every citizen reaps the benefits of a stronger, more equitable nation.”
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