According to President Bola Tinubu’s 2025 budget, inflation will fall from 34.6% this year to 15% the following year.
He made this statement during his presentation of the N49.7 trillion 2025 budget plan to a joint session of the National Assembly on Wednesday.
The president also stated that the exchange rate would be reduced from around N1,700 to N1,500 per dollar.
Tinubu stated, “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 added.
Tinubu’s budget highlights include N4.91 trillion for defence and security, N4.06 trillion for infrastructure, N2.4 trillion for health, and N3.5 trillion for education. These projections are based on observations such as decreased importation of petroleum products, increased exports of finished petroleum products, a bumper harvest due to improved security, and reduced reliance on food imports.
According to the National Bureau of Statistics ‘s most recent Consumer Price Index (CPI) report, the November inflation rate increased by 0.72% points from the October 2024 inflation rate.
“On a year-on-year basis, the headline inflation rate was 6.40% higher than in November 2023 (28.20%). This demonstrates that the headline inflation rate (on a year-on-year basis) increased in November 2024 compared to the same month the previous year (November 2023),” the Bureau stated.
Significantly, the food inflation rate in November 2024 was 39.93% year on year, 7.08% greater than the rate in November 2023 (32.84%).
