President Tinubu signing the budget
The Federal Executive Council (FEC) has proposed the sum of N47.9 trillion for the 2025 fiscal year for submission to the National Assembly on Monday.
The Minister of Budget and Economic Planning, Atiku Bagudu disclosed this after the Council meeting chaired by President Bola Tinubu on Thursday at the Presidential Villa.
According to him, the Council pegged the price of crude oil at 75 dollar per barrel and proposed N1400 as exchange rate to a dollar with oil production put at 2.06million barrels per day.
Bagudu said that the budget proposal included new borrowings of N9.2 trillion to finance the budget deficit in 2025.
The minister added that with the growth rate of 3.19 per cent as at the second quarter of 2024, the Federal Government would continue to tackle Inflation, strengthen economic resilience and provide more support for the economy.
He also said that government would continue to support high employment generation sectors, improve business environment and effective implementation of youths development and social investment programmes.
Bagudu also disclosed that FEC reviewed the 2024 Budget implementation and acknowledged that the review revealed promising in revenue collection and expenditure management.
” Despite lacks in prorated target, the overall trajectory shows that fiscal effort are on track with key non-oil streams performing better than anticipated.
Similarly, the minister said FEC approved the medium term expenditure framework and the fiscal strategy paper to be submitted to the NASS.
” This is in addition to the bills that are already at the National Assembly, the Economic Stabilisation Bill and Tax Reforms Bill , which we believe we will have a very strong growth in 2025,” he said.
Meantime, the Federal Executive Council (FEC) has approved $2.2 billion financing programme for external borrowing, including a potential Eurobond and Sukuk bond offer.
Mr Wale Edun, the Minister of Finance and Coordinating Minister of the Economy, made this known while briefing newsmen after the FEC meeting on Wednesday at the Presidential Villa, Abuja.
“We just had the Federal Executive Council meeting, and I am privileged to present two memoranda to the Federal Executive Council.
” The first one was to complete the borrowing programme of the Federal Government in terms of external borrowing with the approval of a $2.2 billion financing programme.
” It is made up of access to the international capital market for some combination of the Euro bond offer and the Sukuk bond offer, and perhaps a Euro bond of about $1.7 billion.
“Sukuk financing of another $500 million the actual makeup of the financing which will be done as soon as the National Assembly has considered and hopefully approve the borrowing plan.
“If the external borrowing approval is given, it will be done this year, as soon as possible after approval.”
He explained that the actual combination of instruments that would be raised would depend on what the advisors would say about market conditions at the time of the decision to enter the market.
“Of course, earlier in the year, we had shown the resilience of the Nigerian financial markets, and the depth of their capacity, the increased complexity and sophistication by having a domestic issuance of dollar bonds, which attracted Nigerian investors from far and wide.
“Likewise, being able to access the international capital market is also a sign of the acceptance and the support for the macroeconomic programmes of President Bola Tinubu-led administration,” he said.
The minister said that the economic recovery and revival programme to turn around the economy focused on macroeconomic pillars of market pricing of the PMS and of foreign exchange.
He also disclosed that FEC had approved the Ministry of Finance’s incorporated real estate investment fund.
According to him, the fund is the basis for the revival and the return of long-term mortgage financing to the Nigerian economy.
“The Morph Real Estate Investment Fund is going to be, in the first instance, a N250 billion fund that will provide low-cost and long-term mortgages to Nigerians that want to acquire houses.
” It will help to complete or help to fill part of the gaping 22 million unit housing deficit. Of course, it will create jobs and stimulate economic growth.
“It will also pave the way for other investors in the private sector to come in and participate in the all-important housing construction industry with huge benefits and knock-on effects throughout the whole economy.
“Long-term investors have the opportunity to earn market rates of interest on investment.
“This is going to be blended with seed funding of N150 billion,” he said. (NAN)
