President Bola Tinubu has outlined how his N47.9 trillion 2025 budget will stabilise the economy, forecasting a reduction in the exchange rate from N1,700 to N1,500 per dollar and a drop in inflation from 34.6% to 15% by next year.
Presenting the budget to a joint session of the National Assembly on Tuesday, Tinubu emphasised that the projections are anchored on key economic reforms and strategic initiatives.
“The budget projects inflation will decline from the current rate of 34.6% to 15% next year, while the exchange rate will improve from approximately N1,700 per dollar to N1,500. Additionally, it assumes a base crude oil production of 2.06 to 2.5 million barrels per day,” he said.
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Tinubu explained that these economic targets rely on several factors, including reducing petroleum product imports, increasing exports of refined petroleum products, boosting agricultural output through improved security, and decreasing reliance on food imports.
Highlights of the 2025 budget include N4.91 trillion for defense and security, N4.06 trillion for infrastructure, N3.5 trillion for education, and N2.4 trillion for health.
The projections come as Nigerians grapple with economic challenges, including rising inflation and a fluctuating exchange rate. The naira recently traded at N1,700 per dollar, compounding the financial strain on households.
According to the National Bureau of Statistics (NBS), the inflation rate increased to 34.60% in November 2024 from 33.88% in October. “On a year-on-year basis, the headline inflation rate was 6.40 percentage points higher than the rate recorded in November 2023 (28.20%),” the NBS stated.
Food inflation has also surged, reaching 39.93% in November 2024, compared to 32.84% in November 2023.
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