ADVERTISEMENT
TechEconomy
Saturday, May 31, 2025
No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS
No Result
View All Result
Tech | Business | Economy
No Result
View All Result
Podcast

Home » How Nigeria’s 2025 Budget will Impact Businesses, Consumers

How Nigeria’s 2025 Budget will Impact Businesses, Consumers

By; Latifat Fashina

Techeconomy by Techeconomy
February 12, 2025
in Finance
1
How 2025 Budget will Impact Citizens
Budgets |

Budgets |

RelatedPosts

Naira vs Dollar | Asset management

Naira Appreciates in the Official Market, Closes at N1,586/$1

May 30, 2025

Alleged N76bn Fraud: EFCC Witness & Ex-Union Bank ED Reveals He Wrote-Off Arik’s $2.3m Debt

May 29, 2025

Nigeria’s 2025 appropriation bill was designed against a backdrop of global and domestic economic challenges, including high inflation, exchange rate volatility, and fiscal constraints.

The proposed budget is a 41.91% increase from the ₦35.05 trillion allocated in 2024 (₦28.7 trillion initial budget plus ₦6.2 trillion supplementary budget).

Prioritising defence and security (9.87%), followed by infrastructure (8.16%), education (7.08%), and health (4.99%), the 2025 budget reiterates the government’s economic vision, particularly in tackling insecurity, which has negatively impacted business operations, investor confidence, and agricultural productivity, leading to rising food prices and high poverty rate.

The government has projected ₦36.35 trillion in revenue (up from ₦25.9 trillion in 2024) while budgeting an aggregate expenditure of ₦49.74 trillion, resulting in a deficit of ₦13.39 trillion. Revenue is expected to come from both oil and non-oil sources.

An important component of the budget is tax reform, which includes nearly doubling VAT from 7.5% to 12.5% by 2026, although essential goods like food and medicine will remain exempt.

The government also aims to boost revenue through tax administration improvements and agency restructuring, with the Federal Inland Revenue Service (FIRS) and Nigerian Customs Service (NCS) playing key roles.

However, these revenue targets could have huge implications for businesses and consumers.

Impact on Businesses

The budget’s increased focus on defence and security (9.87%) points to a commitment in addressing insecurity, which could improve the business climate, reduce operational risks, and boost investor confidence.

Again, higher capital expenditure on infrastructure may lower logistics and production costs in the long term.

However, several challenges remain:

  • Higher Taxes on Businesses: A VAT increase (to 12.5% as proposed) will raise costs for businesses dealing in non-exempt goods and services. Companies will either absorb these costs or pass them on to consumers, potentially reducing demand.
  • Increased Compliance Costs: Businesses will need to adjust tax reporting systems to comply with new tax rules, leading to additional operational expenses.
  • Rising Borrowing Costs: The CBN’s monetary tightening policies have resulted in higher interest rates, making it more expensive for businesses to finance expansion. This could slow investment and economic growth.
  • Telecom Sector Impact: The 50% increase in telecommunications tariffs will also raise operational costs for businesses dependent on digital services, affecting sectors such as fintech, e-commerce, and tech startups.

Impact on Consumers

  1. Increased Cost of Living:
2024 Cost of Living Crisis - AFEX predicts
Advertisements
MTN ADS
Cost of Living Crisis
  • While VAT exemptions cover essential goods, prices for non-exempt items (about 18% of goods and services) will rise, reducing disposable income and increasing poverty risks.
  1. High Inflation Concerns:
  • The budget targets an inflation drop from 34.6% to 15%, but given existing economic pressures, achieving this may be difficult in the short term. Until inflation is contained, consumers will continue facing rising costs for essential goods and services.
  1. Rising Telecom Costs:
Telecom Mast, ALTON, ATCON, Telecom Tax, Tariffs, NCC, Regulator, Telcos. MNOs
Telecom mast
  • A 50% increase in telecom tariffs will impact mobile users, businesses, and digital services, making internet access more expensive and reducing affordability for low-income consumers.

2025 Budget: Broader Economic Consequences

The 2025-2027 Medium-Term Expenditure Framework (MTEF) projects that 56.3% of revenue will come from oil, while 43.7% will be generated from non-oil sources, primarily taxation.

Key economic assumptions include:

  • GDP growth rate increase
  • Inflation decrease to 15%
  • Exchange rate at ₦1,500/$1
  • Oil price at $75 per barrel
  • Crude oil production at 2.06 million barrels per day

However, oil revenue targets are vulnerable to pipeline vandalism, oil theft, and refinery inefficiencies. Addressing these issues is essential for meeting the revenue projections.

Similarly, foreign exchange pressures, high energy costs, and increased interest rates remain major challenges for businesses and consumers.

Improving energy infrastructure and forex stability will be essential to reducing the cost of living and enhancing Nigeria’s economic resilience.

While the 2025 budget seeks to stabilise Nigeria’s economy through higher revenue generation and increased security spending, its impact on businesses and consumers will largely depend on effective policy implementation, tax efficiency, and inflation control.

Without these, high costs, regulatory burdens, and economic uncertainty may overshadow the intended benefits.

Loading

0Shares
Tags: Cost of Livingexchange rate volatilityFIRSfiscal constraints.High Inflation
Previous Post

Telecoms: New Technology Converts Radio Frequencies (RF) into Usable Electricity

Next Post

Telcos Face Fresh Hurdles over 50% Tariffs Hike

Techeconomy

Techeconomy

Related Posts

Naira vs Dollar | Asset management
Finance

Naira Appreciates in the Official Market, Closes at N1,586/$1

by Latifat Fashina
May 30, 2025
0

The naira appreciated in the official market on Thursday, strengthening to N1,586/$1 from its previous close of N1,591/$1. According to...

Read more
Arik Air in 2024

Alleged N76bn Fraud: EFCC Witness & Ex-Union Bank ED Reveals He Wrote-Off Arik’s $2.3m Debt

May 29, 2025
SANEF CEO Uche Uzoebo receives RedTech Award

RegTech Conference: SANEF’s CEO Uche Uzoebo Makes Case for More Financial Inclusion Strategies Targeting Women

May 29, 2025
SEC cancels Silverkuun

SEC Warns Public against Investing in Silverkuun Limited

May 29, 2025
Abbey Mortgage Bank Building

Abbey Mortgage Bank to Raise N100bn for Commercial Banking Licence

May 29, 2025
Naira vs Dollar | Asset management

Naira Falls across Markets, Hits N1,591/$1 in Official Trading

May 29, 2025
Next Post
Telcos, Telecoms 50% Tariffs, Internet, MNOs, Network Providers - the Big Four & Rising Costs | Connectivity in Nigeria

Telcos Face Fresh Hurdles over 50% Tariffs Hike

Comments 1

  1. Pingback: NESG-Stanbic IBTC Business Confidence Monitor Records +12.29 Index in April – BNS Global News

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

I agree to the Terms & Conditions and Privacy Policy.

This site uses Akismet to reduce spam. Learn how your comment data is processed.

Techeconomy Podcast

Techeconomy Podcast
Techeconomy Podcast

Infowave is brought to you by TechEconomy. Every week we will bring new stories from startups and influencers who are shaping and changing the world we live in. We’ll also bring you reports on topics you should know.

Follow us @techeconomyng for more.

TECH TALK EPISODE 2
byTecheconomy

PRODUCTIVITY AND WORK-Life Balance

TECH TALK EPISODE 2
TECH TALK EPISODE 2
May 22, 2025
Techeconomy
CYBERSECURITY ESSENTIALS
April 24, 2025
Techeconomy
Digital Marketing Trends and strategies for 2025 and beyond
February 27, 2025
Techeconomy
Major Lesson for Techies in 2024 and Projections for 2025
December 6, 2024
Techeconomy
Major Lessons for Techies in an AI-Driven World | Techeconomy Business Series Highlights
November 26, 2024
Techeconomy
Maximizing Profitability Through Seasonal Sales: Strategies For Success
November 8, 2024
Techeconomy
Techeconomy Business Series
October 15, 2024
Techeconomy
PRIVACY IN THE ERA OF AI: GETTING YOUR BUSINESS READY
May 30, 2024
Techeconomy
Unravel the Secrets of Marketing Everywhere All At Once with Isaac Akanni from Infobip | Infowave Podcast Episode 1
February 9, 2024
Techeconomy
The Role of Ed-tech in Life Long Learning and Continuous Education
October 19, 2023
Techeconomy
Search Results placeholder

WHAT IS TRENDING

https://www.youtube.com/watch?v=g_MCUwS2woc&list=PL6bbK-xx1KbIgX-IzYdqISXq1pUsuA4dz

Follow Us

  • About Us
  • Contact Us
  • Careers
  • Privacy Policy

© 2025 Techeconomy - Designed by Opimedia.

No Result
View All Result
  • News
  • Tech
    • DisruptiveTECH
    • ConsumerTech
      • Accessories
      • Phones
      • Laptop
      • Gadgets and Appliances
      • Apps
    • How To
    • TechTAINMENT
  • Business
    • Telecoms
      • Broadband
    • Mobility
    • Environment
    • Travel
    • Commerce
    • StartUPs
    • TE Insights
    • Security
  • Partners
  • Economy
    • Finance
    • Fintech
    • Digital Assets
    • Personal Finance
    • Insurance
  • Features
    • IndustryINFLUENCERS
    • Guest Writer
    • Appointment
    • EventDIARY
    • Editorial
  • Apply
  • TecheconomyTV
  • Techeconomy Events
  • BusinesSENSE For SMEs
  • TBS

© 2025 Techeconomy - Designed by Opimedia.

Translate »
This website uses cookies. By continuing to use this website you are giving consent to cookies being used. Visit our Privacy and Cookie Policy.