The Federal Executive Council (FEC) Monday approved a budget estimates of ₦47.9 trillion ($28.18 billion) for the 2025 fiscal year, marking a significant increase from the previous year’s ₦27.5 trillion.
There are indications that President Tinubu will present the 2025 Appropriation Bill Wednesday December 18 earlier fixed for Tuesday, December 17, 2024.
Blueprint authoritatively gathered from a top management source of the National Assembly who said feelers from the Presidency in the early hours of Monday, indicated that the budget presentation will come up Wednesday.
Senate President Godswill Akpabio, had at the close of plenary Thursday last week, announced that Tinubu will present the 2025 Budget estimates to joint session of the National Assembly Tuesday this week.
And on the strength of the planned budget presentation, Akpabio fixed commencement of Senate plenary Tuesday this week, at10:30 am as against the usual 11:00am plenary commencement.
Both Chambers of the National Assembly had, preparatory to presentation of the budget by the president, passed the 2025-2027 Medium Term Expenditure Frame Work ( MTEF ) and Fiscal Strategy Paper ( FSP) which contained the oil benchmark of USD 75 per barrel for 2025, 2.06million Crude Oil Production per day, Exchange rate of N1,400 to USD1 among others.
…FEC on Budget
Briefing State House correspondents at the end of the FEC meeting chaired by President Bola Ahmed Tinubu, Minister of Budget and Economic Planning Senator Abubakar Atiku Bagudu said the budget aligns with the administration’s Renewed Hope Agenda and aims to stimulate economic growth through strategic investments.
Bagudu said the budget is based on an oil price benchmark of $75 per barrel and a production target of 2 million barrels per day.
“This budget reflects our commitment to building on the successes achieved in 2024, focusing on macroeconomic stability and human capital development.
“Today, the Federal Executive Council approved the budget proposals for 2025 with amendments, which Mr President directed following a presentation to the Federal Executive Council by the director of the budget office.
“The 2025 budget proposal articulates the federal government financial plan for the 2025 fiscal year and aligns with the Renewed Hope Agenda and the National Development Plan, 2021, 2025, and earlier, medium term expenditure framework and fiscal strategy paper was designed to build on the advances in macroeconomics stability, security gains, infrastructure gains, human capital development effort and creative industries, manufacturing and all the measures that have been taken to expand economic activity, create consumer credit, National Agricultural Development Fund, gas, CNG initiative, housing initiative, all of them intended to build economic activity and the successes noted in 2024.
“The 2025 framework is based on a benchmark oil price benchmark of 75 dollar per barrel, oil production of 2.06 billion barrels per day and the exchange rate of N1,400, all these are already included in the medium term of which we have presented here, which have also been approved by the National Assembly.
“So the total projected revenue for 2025 stands at N34,820,000,000,000 trillion out of which the expenditure is projected at N47,960,000,000,000 trillion which is an increase of 36.8% from the 2024 estimate. The deficit for 2025 is projected at 13.13% representing 3.89% of GP. If you recall, this administration inherited l6.1 from the 2023 budget.
“But given the success achieved in 2024 we were still able to maintain the deficit.
“Comments were taken from the by the members of the Executive Council and Mr. President directed some consequential adjustment while, approving the figures,” the minister said.
…FG renames Uniabuja, announces free train services
Another major decision of the FEC was also the renaming of the University of Abuja as Yakubu Gowon University.
Minister of Information and National Orientation Mohammed Idris, who announced the decision, said renaming the varsity was to honour Nigeria’s former Head of State, General Yakubu Gowon, who recently celebrated his 90th birthday.
He said the federal government’s decision would be forwarded to the National Assembly for legislative process to effect the changes.
In a related development, the FEC also approved free train services for Nigerians from December 20, 2024 to January 5, 2025 for ease of movement.
Idris told journalists that the initiative was in line with President Tinubu’s commitment to easing transportation costs for vulnerable Nigerians during the holidays.
“This is consistent with the President’s desire to cushion the effect of transportation costs, especially for the most vulnerable Nigerians.
“As we did last year, free train services will be available nationwide from December 20 to January 5,” he said.
Idris said the scheme was successfully implemented during the previous Christmas and Eid celebrations.
He said its continuation reflects the administration’s commitment to supporting Nigerians during key festive periods.
The minister also announced that the FEC will go on a Christmas break and resume on January 6, 2025.
…Approves €161m for power upgrade
Similarly, the FEC also approved €161 million contracts for the engineering, procurement, construction and upgrades of power substations under the Presidential Power Initiative (PPI).
Minister of Power, Mr Adebayo Adelabu, who disclosed this at a media parley in the Villa, said the first phase of the project would involve upgrade of 14 existing substations and the establishment of 21 new ones aimed at increasing the national electricity supply.
“The approval marks a crucial step in delivering on President Bola Ahmed Tinubu’s promise to enhance Nigeria’s power capacity,” he said.
He said the initiative aims to achieve an operational capacity of 12,000 megawatts within four years, with an immediate target of 8,000 megawatts in the next 12 to 24 months.
Adelabu said key locations for the substations include Onitsha, Abeokuta and Sokoto.
“These upgrades are essential for stabilizing our transmission network and ensuring reliable power supply to Nigerians,” he said.
The minister said the PPI is a collaborative effort with Siemens AG, which has already delivered 10 mobile substations and 10 power transformers as part of its commitment.
“There were basically two approvals for the Federal Ministry of Power as presented. The first was an approval for the award of contract, for engineering, procurement, construction and financing for the implementation of the 330/132 KV and 132/33 KV substations upgrade under the Phase One of the presidential initiative, popularly known as the Siemens project.
“Subsequent upon completion of the pilot phase of this project. So the federal executive council at today’s meeting considered it necessary for us to move forward as promised by the president of the Federal Republic of Nigeria at a meeting he held with the President of the Republic of Germany last week.
“The cost of this first batch of the phase one of the Siemens project that was approved this afternoon is Euro161.33 million. The phase one of this Siemens project, as it relates to the transmission, upgrade and expansion actually include 14 brown field substations that need upgrade and revamping and 21 Greenfield substations, which are new substations to be built across the country to improve the transmission segment.
“The first batch of this phase one of the projects includes one Onitsha, 330/133 KV substation under the Enugu electricity distribution company. Two, Offa 132/33 KV substation under the Ibadan electricity company.
“There is the new Abeokuta 330/132 KV substation. We have Ayede 330/132 KV substation. And lastly, Sokoto 132/33 KV substation. Those are the five substations to be worked upon under the first batch of this phase one of the Seimens project. And we expect that this will further improve and stabilise the transmission segment of the power sector value chain in no distant future on completion,” Adelabu further said.
The minister said the FEC also approved the acquisition of an office complex for the Nigeria Electricity Liability Management Company (NELMCO) in Abuja for ₦1.7 billion to reduce the escalating rental costs and ensured that NELMCO effectively manages its expanded responsibilities in the reformed electricity sector.
“The second approval relates to the award of a contract for the acquisition of an office complex for the Nigeria Electricity Liability Management Company, which we all know as NELMCO.
“The office complex approved for outright purchase is at Plot 2148, Cadastra Zone A02 Wuse 1 District Abuja. The cost of this acquisition is N1.7 billion inclusive of 7.5 per cent VAT.
“We all know that NELMCO is the product of the electricity power sector reform act of 2005 DPSRA, with a very specialised role to play in ensuring the success of the electricity sector reform,” he said.