Onome Amuge
President Bola Tinubu has presented an optimistic outlook for Nigeria’s foreign exchange market, projecting a strengthening of the naira against the dollar.
The president, in the budget proposal for 2025, unveiled earlier today,anticipated the exchange rate to appreciate from the current level of around N1700 to N1500 per dollar by 2025.
President Tinubu, who tabled a budget proposal of N49.7 trillion for the 2025 fiscal year, outlined the administration’s vision for a stronger, more resilient economy.
Tagged the “Restoration budget, securing peace and building prosperity”, the proposal aims to restore macroeconomic stability and set the nation on a course for economic growth, as outlined by President Tinubu before the joint session of the National Assembly.
The president, while commending the resilience of Nigerians amid growing economic indices, stated:
“In the year 2024, it was projected at 3.2%, and against predictions of our country, we have made significant progress. Our economic economy grew by 3.46%. The improvement we have witnessed in the year 2024 budget has led all of us into the 2025 budget.”
Tinubu reassured members of the National Assembly that, based on the government’s budget projections, inflation is expected to decline in the coming year. He also emphasised the administration’s commitment to reducing the foreign exchange rate
“The budget projects inflation will decline from the current rate of 34.6% to 15% next year. The exchange rate will improve from approximately N1700 per dollar to N1500 and the base crude oil production assumption of 2.06 barrels per day.
“The projections are based upon the following observations. Reduce the importation of petroleum products alongside increased exports of finish, petroleum products, and bumper harvest, driven by enhanced security, reducing reliance on food imports, and increasing foreign exchange influence through foreign portfolio investments.
“I have crude oil output and export coupled with substantial reduction and upstream oil and gas production costs,” he stated.
President Tinubu’s budget proposal placed a heavy emphasis on certain vital sectors, as indicated by the substantial allocations to Defense and Security (N4.91trn), Housing (N4.06trn), Health (N2.48trn), and Education (N3.58trn).
