President Bola Tinubu on Wednesday announced the Federal Government’s ambitious goal to stabilize the exchange rate at N1,500 to the dollar as part of the framework for the 2025 budget, marking a significant reduction of N200 from the current rate of N1,700 to the dollar.
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his declaration was made during his presentation of the 2025 Appropriation Bill to the joint session of the 11th National Assembly in Abuja.
In his address, Tinubu projected a significant economic turnaround for Nigeria, with inflation expected to decline from its current rate of 34.6% to 15% in 2025.
He noted that the nation’s crude oil production assumption has been set at 2.06 million barrels per day, which, alongside other critical reforms, is expected to bolster Nigeria’s fiscal health.
Tinubu explained that the projected economic improvements are tied to key strategies, including reducing the importation of petroleum products by enhancing local refining capacity.
He emphasized the importance of boosting foreign exchange inflows through increased exports of refined petroleum products and attracting foreign portfolio investments.
Additionally, the President highlighted the role of improved agricultural productivity, achieved through enhanced security measures, in reducing dependence on food imports.
According to Tinubu, these reforms, coupled with increased crude oil output and a substantial reduction in upstream oil and gas production costs, will help stabilize the exchange rate and support the smooth implementation of the 2025 budget.
He assured lawmakers and citizens that these measures are designed to enhance foreign exchange availability, reduce inflationary pressures, and strengthen Nigeria’s overall economic stability.
The announcement sparked reactions from lawmakers and economists alike. While some expressed optimism about the proposed economic reforms, others urged the administration to address structural challenges in the oil and gas sector, foreign exchange market, and agricultural production to ensure these ambitious targets are met.
The 2025 budget, seen as a cornerstone of Nigeria’s economic recovery plan, is being closely watched as the government works to translate these projections into tangible outcomes.