PRESIDENT Bola Tinubu said the 2025 budget estimates would focus on ensuring inflation decline from the current 34.6 per cent to 15 per cent next year.
The President said this during his presentation of the N47.9 trillion 2025 budget proposal to a joint session of the National Assembly on Wednesday, December 18.
He also assured that measures were in place to ensure Nigeria’s volatile exchange rate improves from approximately N1,700 per dollar to N1,500.
According to Tinubu, “This is an ambitious but necessary budget to secure our future.”
“The budget projects inflation will decline from the current rate of 34.6 per cent to 15 per cent next year, while the exchange rate will improve from approximately 1,700 naira per US dollar to 1,500 naira, and a base crude oil production assumption of 2.06 million barrels per day,” Tinubu said.
He stressed that the budget projections were based on observations such as reduction of petroleum products importation, increased export of finished petroleum products, bumper harvest driven by enhanced security, and reducing reliance on food imports, among others.
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 listed highlights of the budget to include defence and security – N4.91 trillion, infrastructure – N4.06 trillion, health – N2.4 trillion, and education – N3.5 trillion, among others.
The President explained that the 2025 budget sought to restore macroeconomic stability enhance the business environment, foster inclusive growth, employment and poverty reduction, and promote equitable income distribution and human capital development.
“In 2025, we are targeting N34.8 trillion in revenue to fund the budget. Government expenditure in the same year is projected to be N47.90trillion including N15.81trillion for debt servicing,” he added.
Notably, N13.0 trillion or 3.89 per cent of GDP will make up the budget deficit (borrowings).
The ICIR reports that Nigerians are grappling with economic hardship following an incessant increase in inflation and a volatile exchange rate that has seen dollar exchange as high as N1,700 in recent days.
Recall, on Monday, December 16, the National Bureau of Statistics (NBS) said Nigeria’s headline inflation rate rose to 34.60 per cent in November 2024 from 33.88 per cent in October 2024.
The November inflation rate showed an increase of 0.72 per cent points compared to the October 2024 inflation rate, according to NBS’s latest Consumer Price Index (CPI) report which measures the rate of change in prices of goods and services.
“On a year-on-year basis, the headline inflation rate was 6.40 per cent points higher than the rate recorded in November 2023 (28.20 per cent). This shows that the headline inflation rate (year-on-year basis) increased in November 2024 compared to the same month in the preceding year (i.e., November 2023),” the statistics office said.
Significantly, the food inflation rate in November 2024 was 39.93 cent on a year-on-year basis, 7.08 per cent points higher than the rate recorded in November 2023 (32.84 per cent).
Harrison Edeh is a journalist with the International Centre for Investigative Reporting, always determined to drive advocacy for good governance through holding public officials and businesses accountable.