Dear Subscriber,

There is more to a budget than a name

While some may argue that names hold little significance, for Christians, names often embody identity, purpose, and calling. In economic management, a budget’s impact is determined not by its label but by its outcomes.

In 2000, President Obasanjo referred to his budget as “The People’s Budget,” while President Buhari in 2016 called his “The Budget of Change.” Similarly, the 2025 “Budget of Restoration” may not gain significance from its name but from its role as a tool for economic management.

However, some of the key assumptions underlying the 2025 budget are over optimistic. The inflation target of 15%, down from the current level of 34.6% sounds far-fetched. The benchmark price of Brent leaves no headroom for market swings. Furthermore, the reference to $40bn of gross external reserves could be misleading.

Will you be better off in 2025?

The economy is expected to see incremental improvements in 2025, but progress will require coordinated efforts from the government, corporations, and consumers alike.

Luckily, promising investments, such as the Dangote Refinery, and Shell’s investment in Bonga are a shot in the arm.

In the attached slides and video, Bismarck Rewane and the FDC think tank break down the 2025 Restoration Budget and its broader economic implications.

Enjoy your read!