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FEC proposes 66.44% increase in 2025 budget to N47.9trn

The Nigerian government announced a N47.9 trillion budget for 2025, a 66.44% increase from the nominal budget of N28.78trn in 2024. The increase becomes only 37% when you take the supplementary budget of N6.6trn into consideration. In U.S. dollar terms, the total spending actually declined by 21% to $34bn based on FGN exchange rate assumptions. Of the many assumptions of the budget, the most unrealistic is the benchmark price of $75pb which is $4.75 above the spot price today. The benchmark price determines the level of savings accruing into the excess crude account.

The global price of lithium plunged to $10,800/tonnes

Lithium prices fell nearly 90% in October, from $84,880/tonne in 2022 to $10,800/tonne, driven by oversupply and a slowdown in electric vehicle (EV) sales. This price drop could lower EV production costs, as lithium accounts for 30-40% of raw material expenses. This price decline could make the production of Lithium in Nigeria relatively unattractive.

FDC’s M.D., Mr. Bismarck Rewane, and analyst, Chidiebere Osuji, discussed these and other burning economic issues on Channels TV Business Morning and Business Incorporated programmes, respectively.

Click the link to watch the video.

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