Nigeria's Finance Minister, Wale Edun, has outlined the fiscal strategy for the upcoming year, revealing plans to address a substantial ₦13 trillion deficit in the ₦48 trillion 2025 budget through borrowing.

This decision comes amidst efforts to sustain economic growth and stability under the leadership of President Bola Tinubu, who has been in office for the past 18 months.

The projected revenue for 2025 is set at ₦34.8 trillion, while expenditures are expected to reach ₦47.9 trillion. This marks a notable increase of 36.8% from the 2024 estimate, resulting in a deficit that represents 3.89% of the Gross Domestic Product (GDP).

Minister Edun emphasized that the budget was crafted within the context of progress achieved under President Tinubu's administration, focusing on strategic government spending and fostering private sector investments.

Minister Edun highlighted the importance of achieving fiscal sustainability, a challenge faced by governments worldwide. He stated, "And even looking at it from an international context, we, like governments around the world, are concerned about how to achieve fiscal sustainability, revenue to expenditure and borrowing that is balanced, to create an environment in which the economy can grow."

This approach signifies the administration's commitment to balancing revenue and expenditure while creating a conducive environment for economic growth.

The Tinubu administration has implemented several policies aimed at enhancing economic stability. These include market pricing of petroleum products and foreign exchange, as well as efforts to improve electricity pricing. Such measures are designed to attract private sector investment, which is crucial for economic development.

Minister Edun noted, "Private sector led economies such as ours and others, rely on investors to put down their money in various projects, increase productivity, create jobs, grow the economy and in the case of countries such as ours, bring the people out of poverty."

Major progress has been made in the domestic refinement of petrol, which not only produces fuel but also provides raw materials for industries ranging from pharmaceuticals to textiles.

Minister Edun remarked, "For the first time in about 25 years we have domestic refinement of petrol, not just to produce petrol but also raw materials for industries across a whole range, from pharmaceuticals to building products to textiles." This development is expected to bolster industrial growth and reduce dependency on imports.

The government's strategy involves not only addressing the immediate fiscal challenges but also promoting sustainable development. The budget prioritizes spending in critical areas while encouraging private sector participation. Minister Edun explained, "This budget is based on government spending in critical areas, but also more importantly, encouraging and making room for private sector investment."