Tinubu targets N1,500/$ exchange rate in 2025 budget

President Bola Ahmed Tinubu has announced that the federal government is aiming for an exchange rate of ₦1,500 to the dollar to ensure the effective implementation of the 2025 budget. This represents a ₦200 decrease from the current rate of ₦1,700 to the dollar.

Tinubu made this declaration on Wednesday while presenting the 2025 Appropriation Bill to a joint session of the 11th National Assembly in Abuja.

“The budget projects that inflation will decline from the current rate of 34.6% to 15% next year, while the exchange rate will improve from approximately ₦1,700 per dollar to ₦1,500,” Tinubu said. “The base crude oil production assumption is set at 2.06 million barrels per day.”

The president attributed these projections to key economic strategies. “The projections are based on the following observations: reducing the importation of petroleum products, increasing exports of refined petroleum products, and achieving a bumper harvest driven by enhanced security, which will reduce reliance on food imports,” he explained.

He further emphasized plans to boost foreign exchange inflows. “Additionally, we aim to increase foreign exchange inflows through foreign portfolio investments. Our crude oil output and exports will improve, coupled with a substantial reduction in upstream oil and gas production costs.”

The proposed adjustments and projections underline the administration’s commitment to stabilizing the economy and ensuring a more sustainable fiscal framework for the coming year.