Understanding the Significance of Nigeria’s 2025 Budget: Insights from Adetilewa Adebajo.

In a recent interview with Arise Television, Adetilewa Adebajo, a prominent Nigerian financial expert and CEO of CFG Advisory, provided critical insights into the newly signed 2025 budget, amounting to N54.99 trillion. This budget, recently approved by both chambers of the National Assembly and signed into law by President Bola Ahmed Tinubu, represents a substantial increase from the previous year’s N27.5 trillion allocation.

Adebajo emphasized a particularly noteworthy aspect of the budget: the non-allocation of funds for the fuel subsidy, a decision that marks a significant departure from previous fiscal strategies. In 2024, the fuel subsidy consumed approximately N4 trillion, creating substantial fiscal pressure. Adebajo highlighted that this shift is crucial, stating, “For the first time in a long while, no funds were allocated to fuel subsidy. I think this is something very important.”

The 2025 budget also outlines key economic parameters, including an exchange rate benchmark of N1500 per dollar, an interest rate set at 15 percent, and a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel. These figures reflect the government’s intent to stabilize the economy and promote sustainable growth.

As Nigeria navigates its economic challenges, Adebajo’s insights underscore the importance of fiscal reform and the potential for a more resilient economic framework, free from the burdens of extensive subsidy allocations. The implications of this budget will undoubtedly shape Nigeria’s financial landscape in the coming year.