Nigerian lawmakers approved 54.99 trillion naira ($36.4 billion) in government spending this year 2025, acquiescing to a late request by President Bola Tinubu.
The budget passed by lawmakers on Thursday raises spending by 9% from an initial 49.7 trillion naira proposed in December. Tinubu asked for a bigger budget after a higher than expected increase in revenue.
The Treasury projects collecting N25.2 trillion in federal taxes this year, surpassing last year’s target.
Tinubu must still give his backing to the budget before it becomes law. Part of the spending plan is $200 million for health care to plug a funding hole created when President Donald Trump froze support from the US Agency for International Development.
The government forecasts 4.6% growth in gross domestic product this year, which would be the the fastest pace in a decade if it is achieved.
That’s more optimistic than the 3.2% projected by the International Monetary fund and the 3.7% anticipated by the African Development Bank. The budget projects annual inflation slowing to 15% in 2025, from more than 34%.
Africa’s largest crude producer based its revenue targets on an oil price of $75 per barrel and output of 2.06 million barrels per day, which Nigeria has struggled to meet in recent years.
With the budget out of the way, Tinubu will hope lawmakers turn attention to a proposal to amend Nigeria’s tax laws, which plans to double value added tax to 15% over six years and cut company taxes to 25% in the same period.
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