By Cross Udo, Abuja
Yesterday, the Federal Executive Council approved a budget proposal of N47.9trn for the 2025 fiscal year.
Minister of Budget and Economic Planning Atiku Bagudu disclosed this while briefing State House correspondents at the end of the Council meeting, which President Bola Tinubu presided over at the Presidential Villa, Abuja.
The approval is part of the Medium Term Expenditure Framework, MTEF, and Fiscal Strategy Paper for 2025-2027 by the Fiscal Responsibility Act 2007.
The framework, which is expected to be submitted to the National Assembly as required by law, either on Friday or Monday, projects a Gross Domestic Product (GDP) growth rate of 4.6%, an exchange rate of $75 to the naira, and oil production of 2.06 million barrels per day.
Bagudu outlined several key parameters that will guide the 2025 budget, which is based on economic projections and government priorities. These include a projected Gross Domestic Product (GDP) growth rate of 4.6 percent for 2025, alongside an oil price benchmark of $75 per barrel and an exchange rate of N1.400 to $1.
Additionally, the government anticipates oil production at 1.06 million barrels per day.
In terms of fiscal strategy, the budget assumes that the government will borrow approximately N13.8trn—about 3.87 percent of the GDP—to fund key infrastructure projects and economic initiatives.
Bagudu emphasized that this borrowing was part of a strategic plan to balance government spending with sustainable debt management.
*Targets economic growth, stability
The Minister noted that “the Nigerian economy is showing signs of resilience, with a 3.19 per cent growth rate recorded in the second quarter of 2024.
This growth will continue through 2025, driven by efforts to tackle inflation and stabilize vital economic sectors.”
He stressed that the Federal Government’s fiscal policies aim to strengthen economic resilience, continue addressing inflationary pressures, and provide more targeted support to drive long-term growth.
Bagudu also highlighted that the implementation of the 2024 budget was progressing well, with significant improvements in revenue collection and expenditure management, despite some delays in achieving pro-rated targets.
“Non-oil revenue streams, in particular, have performed better than initially expected, showing promising progress.
The N47.9trn proposed budget for 2025 includes various provisions, particularly in infrastructure development, social programmes, and critical national projects.
Bagudu also revealed that for the first time, the government’s budget will include contributions to the development commissions that have recently been passed or are being passed by the National Assembly.
“These measures are designed to strengthen the country’s social and economic development at the grassroots level,” he said.
He further noted that the federal government is committed to ensuring that the 2025 budget is passed and signed into law before December 2024. This will create a predictable fiscal environment and adhere to the January-December budget circle that the administration aims to implement moving forward.
In addition to approving the 2025 budget, the FEC endorsed the 2025-2027 Medium Term Expenditure Framework (MTEF) and Fiscal Strategy Papers (FSP), outlining the government’s long-term fiscal policies and strategies for achieving sustainable growth.
These documents will now be sent to the National Assembly for further review.
Bagudu emphasised that the MTEF and FSP provide the necessary roadmap for the government’s fiscal policy over the next three years, ensuring that public finances remain sound and that economic growth targets are met.
He expressed confidence that Nigeria’s economic trajectory is moving in the right direction, with positive growth recorded in key sectors.
He stressed that the government’s macroeconomic policies, particularly market-driven pricing for petroleum products and foreign exchange, contribute to the country’s overall economic stability.
“The fiscal efforts are on track, and we are confident that with these strategic investments and reforms, Nigeria will continue to progress toward a more resilient and sustainable economy,” he declared.
*FEC okays N250bn to address housing deficit, revitalise mortgage financing
Meanwhile, yesterday, the FEC approved a N250bn real estate investment fund to provide affordable, long-term mortgages to Nigerians.
The government explained that the approval was part of efforts to tackle Nigeria’s severe housing deficit and stimulate long-term economic growth.
The Minister of Finance, Wale Edun, disclosed this while briefing State House correspondents at the end of the FEC meeting presided over by President Bola Tinubu at the Presidential Villa in Abuja.
He explained that the initiative was designed to address the country’s critical 22 million-unit housing gap while creating jobs and boosting private sector investment in housing.
The new initiative, known as the Ministry of Finance Incorporated (MOFI) Real Estate Investment Fund, will offer low-cost mortgages to individuals seeking to own homes. Interest rates will be targeted at single-digit or low double-digit figures.
Edun explained that the fund’s unique structure will allow Nigerians to access mortgages with interest rates ranging between 11 percent and 12 percent, a significant reduction from the current market rates that often exceed 30 percent.
The loans will have longer repayment tenures, potentially spanning 20 years or more, to make homeownership more accessible.
“This fund is the foundation for the revival of long-term mortgage financing in Nigeria. It will help bridge the huge housing deficit while fostering job creation and spurring growth in the broader economy.
“The initiative is designed not only to meet the housing needs of Nigerians but also to encourage private sector participation in the housing construction industry,” Edun said.
The N250bn fund will be anchored on a blend of government seed funding and private-sector investments.
The government will contribute N150bn, sourced from low-interest loans available to the government at one per cent, with terms extending up to 40 years.
This government-backed funding will be mixed with market-based investments from long-term savers such as pension funds and life insurance companies.
By combining these two sources of capital, the fund will be able to offer mortgages with affordable pricing.
“The goal is to create a financing model that lowers the cost of homeownership for Nigerians,” Edun explained.
“We aim to attract long-term investors, including pension funds and insurance companies, who will provide additional capital at market-based rates. This, combined with the government’s low-cost funding, will allow us to offer mortgages at a fraction of the current interest rates,” he further said.
The initiative is part of President Tinubu’s broader economic plan to stimulate growth and revitalize the Nigerian economy through strategic investments in key sectors.
According to Edun, the fund will provide affordable housing and have significant multiplier effects across the economy.
The construction industry is expected to benefit from the influx of new investments, which will, in turn, create thousands of jobs and stimulate economic activity.
“The real estate sector has vast potential to drive economic development. This fund will catalyze private sector involvement, leading to job creation, enhanced infrastructure, and the overall revitalization of the housing market,” Edun stated.
The MOFI Real Estate Investment Fund is designed to attract institutional investors and long-term savers who will benefit from market-based returns.
Edun emphasized that the government’s role in this venture would be to provide seed funding, which would then be blended with the investments from the private sector to ensure that the mortgages offered remain affordable for Nigerians.
“This is a promise kept by President Bola Ahmed Tinubu’s administration to make homeownership more accessible for ordinary Nigerians,” Edun said.
“It will relieve millions struggling with exorbitant mortgage rates and short repayment terms. With this new initiative, the prospect of owning a home is no longer a distant dream for many Nigerians,” the Minister added.
Launching the N250bn real estate fund is expected to stimulate significant growth in the housing sector, reduce the housing deficit, and contribute to broader economic stability.
As the fund is rolled out, more details will be made available to the public. The prospectus has been approved by the FEC and is ready for distribution.
Edun highlighted the initiative’s far-reaching economic benefits: “This is not just about building homes; it is about building a sustainable future for Nigeria, with long-term growth, job creation, and a better standard of living for millions of Nigerians.”
