Tinubu’s 2025 Budget Proposal Targets N1,500/$ Exchange Rate, 15% Inflation Rate
President Ahmed Bola Tinubu presented the proposed 2025 budget to the joint session of the National Assembly on Tuesday. The Budget is built on key assumptions, including an exchange rate of N1,500 to the US dollar, and an inflation rate of 15%., an oil production rate of 2.06 million barrels per day.
Currently, FMDQ data showed that the naira strengthened to N1,544.05 per dollar on Tuesday, up from N1,545.10 exchanged on Monday, recording a gain of N1.05.
Similarly, on the black market, the naira appreciated to N1,675 per dollar on Tuesday from the N1,680 exchange rate on Monday.
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Meanwhile, according to the National Bureau of Statistics (NBS), the current inflation rate is put at 34.6%. In June 2024, the headline inflation rate increased to 34.19% relative to the May 2024 headline inflation rate which was 33.95%.
The proposed budget, presented on Wednesday, totals N47.9 trillion. The budget is expected to be funded by a revenue of N34.82 trillion, resulting in a deficit of N13.08 trillion. Notably, the government plans to allocate N15.81 trillion for debt service, accounting for 45.4% of its projected revenue.
The budget allocates significant funds to various sectors, including:
– Defence and Security: N4.91 trillion
– Infrastructure: N4.06 trillion
– Health: N2.48 trillion
– Education: N3.52 trillion
