The Federal Government has said that it is confident to achieving an ambitious revenue target of N36.35 trillion for 2025.
Minister of Budget and Economic Planning, Abubakar Bagudu, expressed optimism that recent reforms under President Bola Tinubu’s administration would pave 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.”
The government’s optimism is backed by a strategic plan detailed in the 2025 Medium-Term Expenditure Framework and Fiscal Strategy Paper, with key assumptions to include: Oil production pegged at 2.06 million barrels per day, a conservative price estimate of $75 per barrel, and 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 the projections.
Amid 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 food 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.
He 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.”
The projected revenue target is contingent on multiple factors—global oil market dynamics, exchange rate stability, and the successful implementation of economic policies.