FEC Approves N47.9 Trillion Budget Proposal For 2025
The Federal Executive Council (FEC), yesterday approved a N47.9 trillion federal budget estimate for the 2025 fiscal year during its meeting at State House, Abuja. Briefing newsmen after the FEC meeting held at the Council Chambers and presided by President Bola Tinubu. Minister of Budget and Economic Planning, Atiku Bagudu, explained that the budget approval was part of the Medium Term Expenditure Framework (MTEF) for 2025-2027, in accordance with the Fiscal Responsibility Act 2007. Bagudu said the executive will put necessary efforts in place to ensure that the 2025 budget estimate was passed by the National Assembly and signed into law by the president before the end of December. Bagudu explained that FEC pegged the price of crude oil at $75 per barrel, exchange rate at N1,400 to the dollar, and oil production at 2.06 million barrels per day. He added that with the growth rate of 3.19 per cent, which came in the second quarter of 2024, the federal government will continue to tackle inflation, strengthen economic resilience, and provide more support for the economy in 2024.
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Headline Inflation Expands by 118bps to 33.88% y/y in October
Consumer prices in Nigeria increased by 118bps to 33.88% y/y in October (September: 32.70% y/y). The outturn is 39bps and 48bps higher than Cordros’ (33.49% y/y) and Bloomberg’s median consensus (32.40% y/y) estimates, respectively. On a month-on-month basis, headline inflation increased by 12bps to 2.64% (September: 2.52% m/m). Food inflation rose significantly by 139bps to 39.16% y/y in October (September: 37.77% y/y). The higher Food inflation on a year-on-year basis was driven by increases in prices of the following items: Guinea Corn, Rice, Maize Grains, Yam, Water Yam, Coco Yam, Palm Oil, Vegetable Oil, Milo, Lipton, and Bourvita. On a month-on-month basis, food prices surged by 30bps to 2.94% (September: 2.64% m/m). Similarly, core inflation (All items less farm produce and energy) increased by 94bps to 28.37% y/y (September: 27.43% y/y). The highest increases were recorded in prices of the following items: Bus Journey within the city, Journey by motorcycle, Bus journey intercity, Rents (Actual and Imputed Rentals for Housing Class), Meal at a local Restaurant (Accommodation Service Class), hair cut service, woman hairbrush, and women’s hairdressing (Hairdressing salons & personal grooming establishments Class). The core index settled at 2.14% m/m in October 2024 compared to the 2.10% m/m in the previous month
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