Olusegun Alebiosu, CEO of FirstBank Group, has expressed optimism that the proposed N49.7 trillion 2025 budget will provide sufficient economic stimulus for households and businesses in Nigeria.
Speaking on Wednesday at the Nigeria Economic Outlook 2025 event, themed “Nigeria 2025: Path to Economic Rebound & Recovery,” Alebiosu highlighted early indicators suggesting that the country’s economy will improve in 2025 compared to the previous year.
He noted that the impacts of some of the painful reforms pursued by the government had exerted considerable strain on household and corporate incomes in 2024, with inflation reaching a three-decade high of 34.60% in November 2024.
However, he emphasized that 2025 looks more promising. “The Government’s proposed NGN49.7 trillion 2025 budget is expected to provide sufficient economic stimulus in view of the lower likelihood for poor budget implementation due to improving the Government’s revenue position,” Alebiosu stated.
The Early Indicators
- Looking at the indicators, Alebiosu pointed out several early signs of economic improvement. The GDP grew steadily on a quarter-on-quarter basis in 2024, with the highest growth of 3.46% recorded in Q3.
- Additionally, the revenue-to-debt service ratio improved to 68%, and foreign reserve balances grew to over $40 billion.
- The introduction of the electronic foreign exchange matching system in December 2024 contributed to market stability.
- Also, increased competition in Nigeria’s downstream sector led to falling prices of premium motor spirit (PMS). The reactivation of the Port Harcourt and Warri refineries further supported economic recovery.
What you should know
- President Bola Tinubu on December 18, 2024, presented N49.7 Trillion as the proposed 2025 budget to the joint session of the National Assembly.
- In the proposed budget, the Federal Government allocated a total of N231,737,478,756 billion for immunization, malaria vaccination, and a vaccine tracking system. Of the total amount, N188, 472,771,130 billion is dedicated to GAVI (Global Alliance for Vaccines and Immunization), supporting immunization programs nationwide.
- The federal government also allocated N4 billion to the construction of a new presidential helipad and jetty in Lagos. This allocation falls under the Ministry of Works, which received a total of N1.1 trillion for 2025. Capital expenditures account for N1.09 trillion, reflecting a commitment to significant infrastructure projects.
- For the Green Line Metro Rail Project, N146.14 billion was budgeted as counterpart funding. The project is a 68km rail network that will stretch from the Lekki Free Zone to Marina, connecting key areas of Lagos, including Victoria Island, Lekki and Ajah.
The National Assembly is expected to pass the 2025 budget in the first week of February.
The joint committee on appropriation of the two chambers of the National Assembly will present their report on the N49.7 trillion 2025 Appropriation Bill for consideration and approval on January 31.
