USAID Freeze: Tinubu Signs $200m to Fill Vacuum
Read Also:
The Federal Government has allocated $200 million to mitigate the impact of the recent suspension of U.S. health aid, particularly from the United States Agency for International Development (USAID). The funds will support critical health programs, including immunization, maternal care, and disease control initiatives affected by the aid freeze.
President Bola Tinubu signed the N54.99tn 2025 Appropriation Bill into law on Friday in a small ceremony at the State House, Abuja, attended by principal officers of the National Assembly and other top government officials.
The bill was passed by both chambers of the National Assembly on Thursday, February 13, after Tinubu requested an increase from the initially proposed N49.7tn.
The National Assembly approved a ₦54.99 trillion ($36.6bn) budget for the fiscal year, surpassing Tinubu’s initial proposal of ₦54.2tn. This increase accounts for additional expected revenues from agencies such as the Federal Inland Revenue Service and the Nigeria Customs Service.
The 2025 budget is based on ambitious economic assumptions, including a crude oil production target of 2.06 million barrels per day at a benchmark price of $75 per barrel. The Federal Government also projects an exchange rate of ₦1,500 to the U.S. dollar and aims to reduce inflation from 34.8 per cent to 15 per cent within the year.
A significant component of the fiscal strategy involves tax reforms aimed at boosting revenue generation and ensuring economic stability. Among the proposed measures is a planned increase in value-added tax (VAT) to 12.5 per cent by 2026, with exemptions for essential goods such as food and medicine to minimize the burden on households.
Additionally, the reform proposes reallocating VAT revenues to favor states that generate more revenue, a move that has sparked debate over potential regional economic disparities.
The 2025 Appropriation Act represents a 99.96 per cent increase from the 2024 budget of N27.5tn, underscoring the government’s expansionary fiscal approach to address economic challenges and social sector priorities.
