The federal government will spend N15.81 trillion on debt servicing in the 2025 fiscal year, a figure higher than the total allocation to defence, infrastructure, education and health.
The debt servicing figure is higher than the N11.72 trillion allocated for defence and security (N4.91 trillion), infrastructure (N4.06 trillion), education (N3.5 trillion), and health (N2.4 trillion).
The president revealed this while presenting the 2025 budget proposal to the joint session of the National Assembly in Abuja on Wednesday.
The federal government is planning to spend N47.96 trillion next year.
The budget, titled “The restoration budget, securing peace, building prosperity,” has about N13.08 trillion deficits or 3.89% of GDP, to be funded through borrowings.
Mr Tinubu said the federal government is targeting N34.82 trillion in revenue to fund the budget.
The budget also projects inflation will decline from the current rate of 34.6 percent to 15 percent next year, while the exchange rate will improve from approximately N1,700 to N1,500 for a US dollar.
The federal government is targeting crude oil production assumption of 2.06 million barrels per day.
The president said Nigeria’s Foreign Reserves “now stands at nearly $42 billion, providing a robust buffer against external shocks.”
