Bola Ahmed Tinubu, Nigerian president has outlined the objectives of the 2025 budget, highlighting its potential impact on key economic indicators.
Speaking on Wednesday while presenting the N47.9 trillion 2025 budget proposal to a joint session of the National Assembly, the President stated that the budget aims to reduce inflation from its current rate of 34.6% to 15% by next year.
Additionally, he projected an improvement in the exchange rate, anticipating a shift from approximately N1,700 per dollar to N1,500 per dollar.
“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 about 2.06 to 2.5 million barrels per day,” Tinubu stated.
He explained that the budget projections are based on factors such as reducing petroleum products importation, increasing the export of finished petroleum products, achieving bumper harvests due to enhanced security, and decreasing reliance on food imports, among others.
Tinubu highlighted key allocations in the budget, including N4.91 trillion for defense and security, N4.06 trillion for infrastructure, N2.4 trillion for health, and N3.5 trillion for education, among others.
Nigerians are currently facing economic challenges due to the persistent rise in inflation and a volatile exchange rate, with the dollar reaching as high as N1,700 in recent days.
On Monday, the National Bureau of Statistics (NBS) reported that Nigeria’s headline inflation rate increased to 34.60 percent in November 2024, up from 33.88 percent in October 2024.
