Olusegun Alebiosu, CEO of FirstBank Group, has expressed confidence that the proposed N49.7 trillion 2025 budget will deliver much-needed economic stimulus, benefiting households and businesses across Nigeria. Speaking at the Nigeria Economic Outlook 2025 event, Alebiosu highlighted early indicators of economic recovery and noted that the 2025 budget would likely mitigate the strains caused by reforms in 2024.
Despite the tough economic conditions in 2024, with inflation hitting a three-decade high of 34.60% in November, Alebiosu is optimistic about the future. He attributed this to the country’s improving fiscal position, the anticipated success of budget implementation, and the growing government revenues.
“The proposed NGN49.7 trillion budget is expected to provide a substantial economic stimulus, with a lower likelihood for poor budget execution due to the government’s improved revenue position,” Alebiosu remarked.
Alebiosu pointed to key economic indicators suggesting improvement for 2025. Nigeria’s GDP showed consistent growth in 2024, including a 3.46% increase in Q3. The country’s revenue-to-debt service ratio improved to 68%, while foreign reserve balances rose to over $40 billion. The introduction of an electronic foreign exchange matching system in December 2024 helped stabilize the market, and falling fuel prices and the reactivation of refineries also signaled positive momentum for the economy.
President Bola Tinubu presented the N49.7 trillion 2025 budget on December 18, 2024, with a significant portion allocated for infrastructure, healthcare, and economic development. Some of the key allocations include:
N231.7 billion for immunization, malaria vaccination, and a vaccine tracking system, with N188.5 billion directed to GAVI.
N4 billion for the construction of a new presidential helipad and jetty in Lagos.
N146.14 billion for the Green Line Metro Rail Project, aimed at connecting major parts of Lagos.
The National Assembly is expected to pass the budget in early February, with the joint committee on appropriation presenting their report on January 31.The 2025 budget reflects a strong commitment to economic recovery, with capital expenditures of N1.09 trillion allocated for infrastructure. The full passage of the budget is expected to support continued growth and development in Nigeria.