Federal Government Confident Of Achieving N36.35trn Revenue Target For 2025

Federal Government Confident Of Achieving N36.35trn Revenue Target For 2025

The federal government has expressed confidence in meeting its ambitious revenue target of N36.35 trillion for the 2025 fiscal year.

This optimism is rooted in President Bola Tinubu’s directive to all revenue-generating Ministries, Departments, and Agencies (MDAs), as well as Government-Owned Enterprises (GOEs), to intensify efforts to boost the nation’s revenue.

The directive, coupled with the economic gains from the removal of fuel and foreign exchange subsidies, has set the stage for an upward trajectory in government revenue, according to the Minister of Budget and Economic Planning, Senator Abubakar Bagudu.

Speaking during the National Assembly Joint Committees on Finance hearing on the 2025 Appropriation Bill, Bagudu stressed the anticipated benefits of President Tinubu’s economic reforms, which have already begun to yield results.

The administration’s economic measures, including market-based pricing of Premium Motor Spirit (PMS) and adjustments to foreign exchange policies, saved the nation approximately N930 billion in previously lost revenue. This figure represents about five percent of revenue losses addressed through these reforms.

“These bold and courageous steps, supported by the National Assembly, are intended to correct distortions in the economy, improve expenditure efficiency, and generate more revenue for the three tiers of government,” Bagudu stated.

The minister noted that the removal of fuel subsidies began to significantly impact revenue in October 2024, while ongoing efforts to ramp up oil production at reduced costs promise additional revenue growth.

The 2025 Appropriation Bill, presented to the National Assembly in December 2024, proposes an expenditure of N49.74 trillion. Key assumptions for the budget include: crude oil production of 2.06 million barrels per day at $75 per barrel; an exchange rate of N1,500 to the dollar; inflation of 15.75 percent; and a GDP growth rate of 4.6 percent.

Despite a projected deficit of N13.08 trillion, the Federal Government remains confident in its ability to generate sufficient revenue to fund the budget. Bagudu attributed this optimism to lessons learned from implementing the 2024 budget.

“The 2024 budget was this administration’s first full-year budget, and the lessons learned have informed the assumptions for 2025,” Bagudu explained.

He cited the removal of fuel subsidies, deregulation of the foreign exchange market, and efforts to address electricity pricing distortions as key drivers of revenue growth. These measures, he said, have significantly improved the government’s ability to generate and allocate funds effectively.

Bagudu also emphasized the administration’s focus on reducing oil importation and improving the performance of revenue-generating agencies. “With the support of the National Assembly, we believe the ambitious revenue target of ₦36.35 trillion is achievable,” he said.

The directive for MDAs and GOEs to enhance their performance aligns with the government’s broader economic goals. Bagudu acknowledged the National Assembly’s role in urging these agencies to ramp up their operations, adding that their improved performance will be crucial to meeting revenue targets.

The minister commended the seamless collaboration between the executive and legislative branches, assuring lawmakers that the administration values their support.

Last week, the Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, also expressed confidence in the government’s fiscal strategy. He pointed to the 100 percent implementation of recurrent expenditure in 2024 as evidence of the administration’s ability to meet its obligations despite economic challenges.

Edun highlighted Nigeria’s GDP growth, which exceeded three percent in 2024—a milestone he described as remarkable, especially compared to developed nations struggling to achieve one percent growth.

“Our focus remains on growing revenues, improving fiscal discipline, and ensuring sustainable economic growth for all Nigerians,” Edun said.

He noted that improved performance by revenue-generating agencies, such as the Nigeria Customs Service and the Federal Inland Revenue Service, has driven consistent revenue growth, crucial for achieving the government’s development goals.

Senator Mohammed Sani Musa and Hon. James Faleke, chairmen of the Joint Committees, commended Bagudu for his detailed presentation. They expressed optimism that all MDAs would cooperate with the committee in its oversight role.

Bagudu assured lawmakers that the administration’s approach, combined with lessons from the 2024 budget and the President’s directive for full cooperation among government agencies, would ensure the achievement of the 2025 revenue target.