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From Isaac Anumihe, Abuja
The Minister of Budget and Economic Planning, Abubakar Bagudu, has assured that the federal government is on track to meet its ambitious N36.35 trillion revenue target for 2025.
Speaking at the National Assembly Joint Committees on Finance hearing on the 2025 Appropriation Bill on Monday, Bagudu expressed strong confidence in the positive outcomes of President Bola Tinubu’s economic reforms, which he said were beginning to show tangible results.
“We are confident in our ability to meet the 2025 revenue target,” Bagudu affirmed. “The bold reforms we have implemented—particularly the removal of fuel and foreign exchange subsidies—are already proving beneficial. These measures have significantly boosted revenue collection at all levels of government, and we expect this upward trajectory to continue.”
Bagudu explained that the elimination of fuel and forex subsidies had been key to increasing government revenue, with the positive impact beginning to reflect in October 2024. As a result, the administration is optimistic that these gains will persist, and plans to direct all Revenue-Generating Ministries, Departments, and Agencies (MDAs) and Government-Owned Enterprises (GOEs) to further ramp up their efforts to maximise contributions to the national revenue.
“The focus is on maximising revenue while minimising costs,” Bagudu added. “We are committed to increasing oil production at reduced costs, as part of our broader strategy to strengthen the nation’s finances.”
The 2025 Appropriation Bill, presented by President Tinubu to the National Assembly in December 2024, proposed N49.74 trillion in expenditure, with key assumptions including 2.06 million barrels per day of oil production, a $75 oil price, an N1,500/$ exchange rate, and 15.75% inflation.
Despite a projected N13.08 trillion deficit, Bagudu reassured the legislators that the government remains confident in its ability to generate sufficient revenue to fund the budget. Drawing on lessons learned from the 2024 budget, he explained that these insights had played a significant role in shaping the revenue assumptions for 2025.
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“The 2024 budget was a learning experience for us,” Bagudu explained. “We have already seen the positive impact of removing the fuel subsidy and deregulating the foreign exchange market. These actions have had a positive effect on both revenue generation and expenditure control. These are reforms designed to fix long-standing distortions in the economy and ensure better allocation of resources.”
Bagudu emphasised the government’s commitment to long-term sustainability by aligning economic reforms with the United Nations’ Sustainable Development Goals (SDGs). He reassured the lawmakers that these reforms would not only increase revenues but also improve the efficiency of government spending, ensuring that funds are used to address the most critical needs of Nigerians.
“Our aim is not just to address immediate challenges but to lay the foundation for lasting economic stability,” Bagudu stated. “By improving revenue generation and ensuring better management of public resources, we can create a more secure future for all Nigerians.”
Looking ahead, Bagudu expressed his gratitude to the National Assembly for their ongoing support, acknowledging that the success of these reforms depends on continued collaboration between the executive and legislative arms of government.
“The cooperation between the National Assembly and the executive is invaluable,” Bagudu said. “It is your partnership that enables us to implement these bold reforms. The success of our revenue strategy depends on the willingness of revenue-generating institutions to adapt to the changing economic landscape and rise to the challenge.”
He continued, “With your continued support, we are confident that we can achieve the ambitious revenue targets for 2025. The President’s directive is clear: all government agencies must work closely with the National Assembly to ensure the success of our economic agenda.”
The Chairmen of the Joint Committees, Senator Mohammed Sani Musa and Honourable James Faleke, commended Bagudu for his detailed and transparent presentation. They expressed hope that all MDAs would collaborate fully with the committee to carry out their duties and contribute to the nation’s economic growth.
Concluding his presentation, Bagudu reaffirmed the importance of accountability in managing government resources. He assured the lawmakers that the administration remains committed to full cooperation with the National Assembly, ensuring that the 2025 revenue target is not only achievable but will be met with the support of all stakeholders.
