Bagudu Says FG Has Kept to 5% Ways & Means, Edun Targets 7% Annual Growth

•Budget minister says Tinubu appreciates Nigerians’ support for economic reforms

•States stability in FX market, downward trend in inflation evidence of reforms’ gains

•Insists security remains key challenge despite boost in oil production

James Emejo in Abuja and Funmi Ogundare in Lagos

The Minister of Budget and Economic Planning,  Senator Abubakar Atiku Bagudu, yesterday declared that the federal government has adhered to the legal borrowing limit of five per cent from the Central Bank of Nigeria (CBN) despite challenges in the domestic and global economic environment.

The minister said Nigerians are already appreciating the gains of key reforms so far implemented by the President Bola Tinubu-led administration, stressing that the president greatly appreciates Nigerians’ support for the reforms.

Bagudu who spoke at the 2025 KPMG/Arise News Channel’s Budget Programme added that stability in the foreign exchange market and declining food inflation were evidence that Nigeria was reaping the gains of the reforms.

Also, speaking at the same  the  Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun,  outlined Nigeria’s fiscal priorities and economic direction for the coming year.  Edun reaffirmed the government’s commitment to fiscal discipline, revenue mobilisation, and an improved investment climate.

He highlighted a projected GDP growth of 4.6 per cent for 2025, with a long-term ambition of 7.0 per cent annually, a crucial target for poverty reduction and sustainable development.

Bagudu allayed concerns over the country’s growing debt burden, assuring that the government would not exceed its legal borrowing limits, particularly from domestic sources.

Bagudu further assured that the federal government would adopt innovative financing methods, including local bonds and external borrowing to meet its fiscal needs.

Bagudu also stressed that asset sales, a policy favoured by the government, would only be carried out when market conditions are optimal to maximise value.

Specifically, he said the government had been able to address issues around insecurity which had prevented farmers from accessing their farms. As a result, he said there’s currently a boost in food production which had reduced food inflation.

He also pointed to the relative stability in the country’s foreign exchange market and the deceleration in headline inflation as evidence that Tinubu’s policies were working.

Bagudu, also noted that reforms in the oil sector, including the removal of fuel subsidy had resulted to significant revenues to state governments to meet their fiscal obligations.

He said one of the key highlights of the 2025 budget was the full deregulation of the petroleum sector, the FX market, and reductions in electricity subsidies.

Bagudu further outlined government’s commitment to revitalising agriculture, which remains a priority sector for poverty reduction and inclusive growth.

He said the sum of N1.5 trillion had been allocated to the Bank of Agriculture (BoA) to provide much-needed financing for farmers, adding that international investors, particularly from Brazil and Saudi Arabia, are increasing their investments in the agricultural sector, with commitments totaling billions of dollars.  He said the current administration was committed to revitalising the solid mineral sector, which had been underfunded despite institutional alignment.

The minister said, “With a N1 trillion allocation in the 2025 budget, the government aims to boost production and productivity in this sector, which is crucial for diversifying Nigeria’s economy.”

He also cited ongoing investments and development in various projects, including industrial-scale mining plants.

Nonetheless, the minister further expressed optimism that ongoing reforms, including the reduction in electricity subsidies through new tariff categories, would positively impact the nation’s oil production, security, and economic activity.

He noted that although the country had surpassed the oil production target of 2.1 million barrels per day, security remained a key challenge, with pipeline vandalism and other infrastructure concerns limiting output.

On oil prices, which recently dipped below $70 per barrel, Bagudu reassured Nigerians that while external pressure to cut oil production was rising, the government believed in the resilience of global demand.

He pointed out that despite a temporary decline, oil prices were expected to stabilise over the long term, with little immediate impact on Nigeria’s oil revenue assumptions for the 2025 budget.

On youth employment and education, Bagudu acknowledged the increasing pressure to provide jobs for the growing youth population.

He highlighted government’s investment in education, which had seen a significant increase in funding for student loans.

Among other things, the minister emphasised that while education remained critical, the real challenge was in ensuring that the labour market would be able to absorb graduates.

Bagudu pointed to initiatives aimed at increasing youth participation in digital economic sectors, particularly software engineering, where international demand was on the increase.

On healthcare, Bagudu acknowledged the rising demand for accessible healthcare, particularly in a country where most people rely on out-of-pocket spending for medical services.

He said the government was increasing healthcare funding, with a focus on expanding access to professional coverage through job creation and economic growth.

Senior Partner at KPMG Nigeria/Chief Executive Officer KPMG West Africa, Tolani Adeyemi, expressed optimism that the 2025 budget could actually stimulate growth if well-implemented.

Wale Edun: FG Targets 7% Annual Growth

On his part, Wale Edun emphasised that macroeconomic stability remains a top priority, with exchange rate stability, trade surplus, and increased oil production positioning Nigeria as a stronger global player. Foreign reserves have exceeded $40 billion, signalling confidence in economic policies and financial management.

A key theme of Edun’s address was the role of the private sector in driving economic expansion, highlighting  public-private partnerships (PPPs) as a critical tool to close Nigeria’s $100 billion annual infrastructure investment gap.

According to him, landmark projects such as the Benin-Asaba Highway and Lagos-Abeokuta Road are set to be developed under PPP frameworks, reducing travel time and boosting productivity.

In the oil and gas sector, Edun emphasised the importance of domestic refining, with the Dangote Refinery now leading local crude petroleum processing. This shift will significantly reduce reliance on imports, strengthen energy security, and enhance economic resilience.

Edun also addressed fiscal policy reforms, stressing the government’s drive to expand the tax base, streamline revenue collection, and create a business-friendly tax system. He noted that a balanced approach to taxation will encourage investment while ensuring adequate funding for national priorities.

As Nigeria moves forward, Edun reaffirmed the government’s dedication to economic transformation, driven by policies that foster growth, stability, and private sector participation.

“Building on strategic reforms, Nigeria is poised to unlock new opportunities for prosperity, accelerate national development, and secure a brighter future for generations to come,” he declared.