President Bola Ahmed Tinubu has set an exchange rate target of N1,500 per dollar for the 2025 fiscal year, according to the 2025 Appropriation Bill presented to the National Assembly on Wednesday. This marks a reduction of about N200 from the current exchange rate of approximately N1,700 per dollar.
The president explained that this exchange rate target was part of the government’s strategy to ensure the smooth implementation of the 2025 budget. The budget projections include a reduction in inflation from the current rate of 34.6% to 15% next year and an assumed crude oil production of 2.06 million barrels per day.
The budget is based on key assumptions, including a reduction in petroleum product imports, increased exports of refined petroleum products, and a bumper harvest facilitated by enhanced security, which will reduce the country’s reliance on food imports. Additionally, the government aims to increase foreign exchange inflows through foreign portfolio investments, while crude oil output and exports are expected to improve alongside a reduction in upstream oil and gas production costs.
These projections reflect President Tinubu’s optimism about the country’s economic future, as the government seeks to improve fiscal stability and growth in 2025.
