President Bola Tinubu has declared the Federal Government’s commitment to reducing Nigeria’s inflation rate from 34.6% to 15% by the end of 2025.
The announcement came during his presentation of the 2025 Appropriation Bill to a joint session of the 11th National Assembly in Abuja on Wednesday, outlining ambitious fiscal reforms aimed at stabilizing the economy and driving sustainable growth.
Tinubu stated, “The 2025 budget projects that inflation will decline significantly from the current 34.6% to 15% by the end of next year. Concurrently, the exchange rate will improve from approximately N1,700 per dollar to N1,500. These projections are critical for stabilizing the economy and ensuring sustainable growth.
The proposed budget, described as a blueprint for economic recovery, is built on key assumptions to spur growth. These include a crude oil production target of 2.06 million barrels per day, a significant reduction in petroleum product imports through expanded domestic refining capacity, and enhanced agricultural output facilitated by improved security measures.
Tinubu highlighted the need to boost foreign exchange inflows through foreign portfolio investments and expanded export opportunities. “These measures are aimed at increasing our crude oil output and exports while achieving a substantial reduction in upstream oil and gas production costs,” he explained.
Infrastructure and Sectoral Investment as Pillars of Reform
The President underscored the importance of infrastructure development, security enhancement, and strategic investments in the oil and gas sector as the foundation of his administration’s economic transformation agenda.
He noted that these efforts would help Nigeria achieve the ambitious targets set in the 2025 fiscal framework, laying a foundation for long-term prosperity
“Our focus is not just on macroeconomic stability but on creating opportunities for Nigerians to thrive. By enhancing infrastructure and ensuring adequate security, we can unlock the full potential of our economy,” Tinubu said.
Revenue Generation and Fiscal Reforms
Tinubu also expressed confidence in the government’s ability to enhance revenue through reforms such as the recently enacted Nigerian Revenue Service Establishment Act and the Tax Reform Bill.
- These measures are expected to strengthen the government’s fiscal position, enabling it to meet its development goals while maintaining fiscal discipline and transparency in implementing the 2025 budget.
- The budget also aims to address Nigeria’s overreliance on imports by improving domestic production capacity in critical sectors such as agriculture and energy.
Tinubu reaffirmed his administration’s commitment to reducing the nation’s dependency on imported food and petroleum products, which have historically strained foreign exchange reserves.
Collaboration as a Catalyst for Economic Transformation
Tinubu urged stakeholders from all sectors of the economy to collaborate in realizing the vision outlined in the 2025 budget. He emphasized that the government’s bold reforms would require collective effort to overcome challenges and build a more resilient and prosperous economy.
- The 2025 Appropriation Bill represents a comprehensive strategy to address Nigeria’s fiscal challenges and set the nation on a path to sustainable economic growth.
- As the government works toward achieving its ambitious targets, the President called on Nigerians to support these initiatives, emphasizing that a stable economy would benefit all citizens.
The proposed budget is expected to undergo legislative review in the coming weeks, with analysts and stakeholders eagerly awaiting its potential impact on Nigeria’s economic trajectory.