President Bola Ahmed Tinubu's proposed N49.7 trillion budget for the fiscal year 2025 has sparked a wave of reactions across Nigeria, with both commendations and criticisms surfacing in response to its ambitious scope and underlying assumptions.
The budget, presented to the National Assembly on December 19, 2024, outlines significant allocations to key sectors such as Defence & Security, Infrastructure, Education, and Health. Specifically, the budget earmarks N4.91 trillion for Defence & Security, N4.06 trillion for Infrastructure, N3.52 trillion for Education, and N2.48 trillion for Health.
These allocations reflect the administration's commitment to addressing critical challenges facing the nation.
Muda Yusuf, Chief Executive of the Centre for the Promotion of Private Enterprise, praised the budget's priorities, stating, "The focus on Defence, Infrastructure, Health, and Education is commendable given the prevailing economic and social conditions."
He further noted that the President's optimism for economic revitalization hinges on reduced fuel importation, increased export of refined petroleum products, improved agricultural output, and enhanced foreign exchange inflows.
However, the proposal has not been without its detractors. Prof. Godwin Oyedokun of Lead City University criticized some of the budget's key assumptions, particularly the projected exchange rate of N1,500 per dollar and the $75 per barrel crude oil price benchmark.
"The exchange rate appears unrealistic given the higher parallel market rates," Oyedokun remarked.
He also highlighted potential challenges in achieving the projected oil production of 2.06 million barrels per day due to issues like oil theft and pipeline vandalism.
The budget's plan to allocate N15 trillion for debt servicing has also raised concerns among financial analysts. "This poses a major risk to the fiscal space in 2025," Yusuf warned, emphasizing the need for reducing the country's debt exposure and addressing high borrowing costs.
Despite these concerns, Bismark Rewane, Chief Executive of Financial Derivative, expressed optimism about the budget's potential impact. In an interview with Channels Television, he stated, "The proposal can make 2025 a better year for Nigerians if implemented effectively."
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