Economist Paul Alaje has called President Bola Tinubu’s projection of a 15% inflation rate by 2025 unrealistic under the current policy framework.
Speaking on Channels Television’s Sunrise Daily on Monday, Alaje criticised aspects of the proposed 2025 budget, describing them as impractical.
“Review the 2025 Budget; the government anticipates 15% inflation. I doubt this projection,” he remarked.
On December 18, 2024, Tinubu presented a ₦49.7tn budget to the National Assembly, highlighting allocations such as ₦4.91tn for defence, ₦4.06tn for infrastructure, ₦2.4tn for health, and ₦3.5tn for education. The budget represents a ₦22tn increase from 2024.
Upon Tinubu’s inauguration in May 2023, Nigeria’s inflation rate stood at 22.41%. However, by November 2024, it had surged to 34.6%, a rise attributed to policies such as subsidy removal and forex rate unification.
While Tinubu expressed optimism about reducing inflation to 15% and improving the exchange rate from ₦1,700 to ₦1,500 per dollar, Alaje remained sceptical.
“Nigeria’s inflation will likely hover around 30% in 2025 unless significant policy changes occur,” Alaje said.
He questioned whether the projections were supported by econometric analysis, adding, “Some budget aspects are realistic, but others raise doubts about feasibility.”