Nigerian President Bola Tinubu has expressed optimism about a significant decline in inflation next year.
In his second budget speech, he projected that inflation will fall to around 15% in 2025, a sharp decrease from the current rate of 34.6%.
Tinubu attributed this projected decline to several factors, including reduced imports of petroleum products and ongoing economic reforms.
He emphasized the government’s commitment to addressing the cost-of-living crisis and improving the overall economic situation.
The 2025 budget, amounting to 47.90 trillion naira, prioritizes security, infrastructure development, and measures to alleviate the burden of rising prices on citizens.
The budget deficit is projected to be 3.89% of GDP, or approximately 13.0 trillion naira.
To combat inflation, the Central Bank of Nigeria has taken steps to tighten monetary policy, raising interest rates six times this year.
Despite these challenges, Tinubu expressed confidence in the country’s economic outlook, citing a healthy trade surplus and foreign exchange reserves of around $42 billion.
However, the government will need to allocate a significant portion of the budget, 15.18 trillion naira, to debt servicing.
