Dollar to Exchange at N1,500 as Inflation Eases to 15% in 2025

President Bola Ahmed Tinubu has expressed optimism that the 2025 budget will alleviate economic challenges by reducing inflation and stabilizing the naira exchange rate. Tinubu made this statement on Wednesday while presenting the N47.9 trillion budget proposal to a joint session of the National Assembly.

The President outlined key projections of the budget, which he described as “ambitious but necessary to secure our future.” He stated that the inflation rate, currently at 34.6%, is expected to decline to 15% by next year, while the exchange rate will improve from approximately N1,700 to N1,500 per dollar.

The budget also assumes a base crude oil production of 2.06 million barrels per day and anticipates economic growth driven by reduced reliance on petroleum product imports, increased export of finished petroleum products, improved security fostering bumper harvests, and decreased dependence on food imports.

Tinubu explained that the proposed allocations reflect the government’s commitment to addressing key national issues. The breakdown includes:

Defence and Security: N4.91 trillion

Infrastructure: N4.06 trillion

Health: N2.4 trillion

Education: N3.5 trillion

“These projections are built on realistic foundations and reflect our resolve to tackle the economic challenges head-on.”

The President’s optimism comes amidst rising economic hardship for Nigerians, marked by soaring inflation and a volatile exchange rate. On Monday, the National Bureau of Statistics (NBS) reported that Nigeria’s inflation rate climbed to 34.60% in November 2024, up from 33.88% in October. Food inflation rose even higher, reaching 39.93% year-on-year compared to 32.84% in November 2023.