President Bola Tinubu has announced plans to reduce the exchange rate from N1,700 to N1,500 per dollar in 2025.
He disclosed this while presenting the 2025 budget estimate of N47.9tn before members of the House of Representatives and the Senate on Wednesday.
The budget outlined several key goals, including cutting inflation from 34.6% to 15% by the end of 2025.
To achieve this, the government will 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.”
