2025 Budget Targets 15% Inflation Rate, ₦1,500 Exchange Rate — Tinubu

President Tinubu outlines ambitious goals for the 2025 budget, aiming to reduce inflation to 15% and stabilize the dollar exchange rate at ₦1,500.

President Bola Tinubu predicts that inflation, currently at 34.6%, will decrease to 15% according to the 2025 budget forecast for next year.

He made this statement on Tuesday while presenting the N47.9 trillion budget proposal for 2025 to a joint session of the National Assembly.

The President also mentioned that the exchange rate is expected to strengthen from around N1,700 per dollar to N1,500.

Tinubu stated, “This budget is ambitious but essential for ensuring our future security.”

Tinubu stated that the Budget anticipates a decrease in inflation from its current rate of 34.6 percent to 15 percent next year, an improvement in the exchange rate from about 1,700 naira per US dollar to 1,500 naira, and assumes base crude oil production will be set at 2.06 million barrels per day.

He stated that the budget projections are based on factors such as a decrease in petroleum product imports, an increase in exports of finished petroleum products, a robust harvest spurred by improved security measures, and reduced dependence on food imports, among other considerations.

Tinubu outlined the key points of the budget, including allocations for defense and security at N4.91 trillion, infrastructure at N4.06 trillion, health at N2.4 trillion, and education at N3.5 trillion, among other areas.

Nigerians are struggling with economic difficulties due to constant inflation increases and a fluctuating exchange rate, which has recently caused the dollar to reach as high as N1,700.

The National Bureau of Statistics (NBS) reported on Monday that Nigeria’s headline inflation rate increased to 34.60% in November 2024, up from 33.88% in October 2024.

According to the latest Consumer Price Index (CPI) report from NBS, which tracks changes in prices for goods and services, November’s inflation rate rose by 0.72 percentage points compared to October 2024’s figure.

“The Bureau stated, ‘On a year-on-year basis, the Headline inflation rate increased by 6.40 percentage points compared to November 2023 (28.20%). This indicates that the Headline inflation rate rose in November 2024 relative to the same month in the previous year.’”

Notably, the food inflation rate in November 2024 reached 39.93% year-on-year, marking a rise of 7.08 percentage points compared to the 32.84% recorded in November 2023.