By Charles Pemu 
The World Bank has described Nigeria’s record N54.99 trillion 2025 budget as overly ambitious, warning it could force the Federal Government to seek funding through the Central Bank’s Ways and Means facility, a move seen as risky for macroeconomic stability.
At the launch of its Nigeria Development Update in Abuja, the Bank questioned key assumptions in the budget—including oil production targets of 2.1 million barrels/day and a $75 per barrel benchmark—calling them unrealistic. It also cited uncertain revenue sources, like subsidy removal gains and a proposed windfall tax.
World Bank Lead Economist Alex Sienaert warned unmet revenue targets could trigger arrears or renewed deficit financing via the CBN, undermining inflation control and naira stability. He called for scrapping electricity subsidies, improving oil revenue transparency, and reducing wasteful public spending.
In response, Budget Minister Abubakar Bagudu defended the projections, calling them modest and aspirational. He said oil output could exceed targets, and that Nigeria’s budget must reflect potential, not just current limitations.
Finance Minister Wale Edun and CBN Governor Olayemi Cardoso affirmed ongoing reforms, noting gains in revenue, inflation control, and investor confidence. The World Bank urged continued fiscal discipline, support for poor households via cash transfers, and investments in education, health, and infrastructure.
Private sector leaders demanded clear, consistent policies to spur growth, while governors highlighted growing revenues and spending pressures due to inflation and insecurity.
Despite disagreements, both sides agreed on the need for sustained reforms and improved coordination to achieve Nigeria’s $1 trillion economy target by 2030.