President Bola Tinubu has announced the Federal Government’s plan to stabilize the exchange rate at N1,500 to the dollar as part of efforts to ensure the seamless implementation of the 2025 budget.
This target represents an improvement of N200 from the current exchange rate of N1,700 to the dollar.
Tinubu disclosed this on Wednesday during the presentation of the 2025 Appropriation Bill to a joint session of the 11th National Assembly in Abuja.
The proposed budget reflects the government’s determination to address critical economic challenges and lay the foundation for sustainable growth.
He explained that the budget anticipates significant economic improvements in key areas. “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 president stated.
Highlighting the foundation for these projections, Tinubu noted that several strategic measures are being implemented to stabilize the economy. These include reducing the importation of petroleum products and boosting exports of refined petroleum products. He emphasized that achieving a bumper harvest, driven by enhanced security measures, would play a crucial role in reducing reliance on food imports, thereby supporting inflation control.
To further strengthen the nation’s financial position, the president underlined the importance of increasing foreign exchange inflows through foreign portfolio investments. This, he said, would complement the government’s efforts to stabilize the naira and improve the overall macroeconomic environment.
Additionally, Tinubu pointed to efforts to optimize crude oil production and exports as a critical factor in achieving these goals. He expressed optimism about a substantial reduction in upstream oil and gas production costs, which would improve the sector’s profitability and overall contribution to the economy.
“The projections are based on targeted interventions and deliberate policy actions that will drive efficiency and growth,” Tinubu said. “Our crude oil output and exports will improve, coupled with a significant reduction in upstream production costs. These measures will help us achieve our economic objectives.”
The 2025 budget reflects Tinubu’s administration’s broader economic reform agenda, which prioritizes fiscal discipline, security, and investment-driven growth. The government’s projections indicate confidence in its ability to address pressing economic challenges while fostering a more resilient economy.
As Nigeria looks ahead to 2025, the proposed budget underscores the administration’s commitment to stabilizing the economy, improving living standards, and positioning the country for long-term prosperity.
