President Bola Ahmed Tinubu has set an exchange rate target of N1,500 to a dollar in the 2025 Appropriation Bill presented to a joint session of the 10th National Assembly on Wednesday in Abuja.
This represents a reduction of approximately N200 from the current exchange rate of N1,700 to a dollar.
The president stated that this target would facilitate the smooth implementation of the 2025 budget while addressing key economic challenges facing the country.
According to the budget projections, inflation is expected to decline significantly from the current rate of 34.6% to 15% by next year, while the exchange rate will strengthen from around N1,700 per dollar to N1,500.
The projections also include a base crude oil production assumption of 2.06 million barrels per day, reflecting optimism in the oil sector’s growth and contributions to the nation’s revenue.
Explaining the basis for these projections, Tinubu said, “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.”
The 2025 budget proposals highlight the administration’s commitment to stabilising the economy by focusing on domestic production, improved security, and increased foreign exchange inflows. The government also aims to leverage oil revenue while addressing inflationary pressures and enhancing economic sustainability.
