President Bola Tinubu has introduced a 2025 budget plan aimed at reducing the exchange rate to N1,500 per dollar, down from the current N1,700 per dollar.
This proposal is part of efforts to strengthen the economy and improve financial stability. The budget outlined several key goals, including cutting inflation from 34.6% to 15% by the end of 2025. To achieve this, the government plans to increase crude oil production to 2.06 million barrels per day, reduce the importation of petroleum products, and export more refined petroleum.
Additionally, the budget emphasized improving local food production to reduce reliance on imports.
Enhanced security measures are expected to drive a bumper harvest, lowering food costs.
The government also aims to boost foreign exchange inflows by attracting more foreign investments and cutting production costs in the oil and gas sector.
Tinubu said, “The budget projects that inflation will decline from the current rate of 34.6% to 15% next year, while the exchange rate will improve from approximately N1,700 per dollar to N1,500. The base crude oil production assumption is set at 2.06 million barrels per day.
“The projections are based on the following observations: reducing the importation of petroleum products, increasing exports of refined petroleum products, and achieving a bumper harvest driven by enhanced security, which will reduce reliance on food imports. Additionally, we aim to increase foreign exchange inflows through foreign portfolio investments.
“Our crude oil output and exports will improve, coupled with a substantial reduction in upstream oil and gas production costs.”
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