Chijioke Ekechukwu, a former Director-General of the Abuja Chamber of Commerce and Industry, has expressed concern over the exchange rate and inflation projections in President Bola Tinubu’s 2025 budget. Ekechukwu argues that the projected exchange rate of N1,500 to $1 indicates that the Tinubu administration is effectively signaling to Nigerians that the exchange rate will remain high and is unlikely to decrease significantly.
During a discussion on Channels Television, Ekechukwu remarked that Nigerians may have hoped for a stronger naira, possibly aiming for N1,000 to $1, but the government’s budget projection suggests that such a goal is not realistic. He pointed out that this projection essentially sets expectations for a stable but high exchange rate, dismissing any prospects of a sharp decline.
Additionally, Ekechukwu questioned the feasibility of other aspects of the budget, such as the oil production target of 2 million barrels per day. He described this target as overly ambitious, especially considering current production levels. He acknowledged the government’s desire for ambitious goals but cautioned that achieving such a target in 2025 would be challenging without significant changes to current production capabilities.
Ekechukwu also expressed skepticism about the inflation target of 15%, given the current high levels of inflation, fuel prices, and ongoing security challenges. He questioned what measures the government plans to implement to bring inflation down to such a low level, considering these persistent economic issues.
In summary, Ekechukwu warned that the 2025 budget’s economic projections might set unrealistic expectations, particularly regarding the exchange rate and inflation. He urged the government to provide more clarity on how these goals would be achieved, given the current economic challenges.
