Nigeria’s inflation rate, currently at 34.6%, is expected to fall sharply to 15% next year, President Bola Tinubu announced on Wednesday.
This optimistic projection, he explained, is bolstered by reduced petroleum imports and ongoing economic reforms aimed at stabilizing the economy.
Delivering his second budget speech since taking office, Tinubu outlined 2025 spending priorities, emphasizing security, infrastructure, and easing the cost-of-living crisis.
The proposed spending plan for 2025 stands at 47.90 trillion naira, including a budget deficit of 13 trillion naira, or 3.89% of GDP.
“The reforms we have instituted are beginning to yield results, no reversals,” Tinubu declared during a televised address.
Inflation soared last year following the president’s decision to devalue the naira and remove petrol subsidies. These measures, though necessary, intensified a cost-of-living crisis across Africa’s most populous nation.
In response to rising inflation, the Central Bank of Nigeria raised interest rates six times this year, totaling an unprecedented 875 basis points.
Tinubu reported foreign exchange reserves at approximately $42 billion, supported by a robust trade surplus. However, debt servicing in 2025 will require a staggering 15.18 trillion naira.
Despite these challenges, Tinubu remained resolute, signaling a commitment to reforms and long-term economic recovery.