The Federal Authorities has allotted $200 million to mitigate the influence of the current suspension of U.S. well being help, significantly from the US Company for Worldwide Improvement (USAID). The funds will assist essential well being packages, together with immunization, maternal care, and illness management initiatives affected by the help freeze.
President Bola Tinubu signed the N54.99tn 2025 Appropriation Invoice into legislation on Friday in a small ceremony on the State Home, Abuja, attended by principal officers of the Nationwide Meeting and different prime authorities officers.
The invoice was handed by each chambers of the Nationwide Meeting on Thursday, February 13, after Tinubu requested a rise from the initially proposed N49.7tn.
The Nationwide Meeting authorized a ₦54.99 trillion ($36.6bn) funds for the fiscal 12 months, surpassing Tinubu’s preliminary proposal of ₦54.2tn. This enhance accounts for extra anticipated revenues from companies such because the Federal Inland Income Service and the Nigeria Customs Service.
The 2025 funds relies on formidable financial assumptions, together with a crude oil manufacturing goal of two.06 million barrels per day at a benchmark value of $75 per barrel. The Federal Authorities additionally tasks an trade charge of ₦1,500 to the U.S. greenback and goals to cut back inflation from 34.8 per cent to fifteen per cent throughout the 12 months.
A significant factor of the fiscal technique entails tax reforms geared toward boosting income era and making certain financial stability. Among the many proposed measures is a deliberate enhance in value-added tax (VAT) to 12.5 per cent by 2026, with exemptions for important items equivalent to meals and drugs to attenuate the burden on households.
Moreover, the reform proposes reallocating VAT revenues to favor states that generate extra income, a transfer that has sparked debate over potential regional financial disparities.
The 2025 Appropriation Act represents a 99.96 per cent enhance from the 2024 funds of N27.5tn, underscoring the federal government’s expansionary fiscal strategy to handle financial challenges and social sector priorities.
