President Bola Tinubu, announced that the 2025 budget aims to reduce Nigeria’s inflation rate from the current 34.6% to 15% by next year.
He made this statement during his presentation of the N47.9 trillion 2025 budget proposal to a joint session of the National Assembly on Tuesday.
Additionally, Tinubu revealed that the exchange rate is projected to improve from the current N1,700 per dollar to N1,500.
“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, with a base crude oil production assumption of 2.06 to 2.5 million barrels per day,” he said.
The President further explained that the budget projections are based on several key factors, including reducing petroleum product imports, increasing exports of finished petroleum products, achieving bumper harvests through improved security, and reducing reliance on food imports.
Key highlights of the budget include allocations for defence and security (N4.91 trillion), infrastructure (N4.06 trillion), health (N2.4 trillion), and education (N3.5 trillion).
Nigerians are currently facing economic challenges, with rising inflation and a volatile exchange rate that recently saw the dollar trading as high as N1,700.
The latest report from the National Bureau of Statistics (NBS) revealed that Nigeria’s headline inflation rate reached 34.6% in November 2024, up from 33.88% in October 2024.
This marked a 0.72% point increase compared to the previous month.
On a year-on-year basis, the November 2024 inflation rate was 6.4% higher than the 28.2% recorded in November 2023.
Food inflation also spiked, reaching 39.93% in November 2024, up by 7.08% from the previous year’s 32.84%.
