President Bola Tinubu has set an ambitious target of stabilizing Nigeria’s exchange rate at N1,500 to the dollar as part of his administration’s economic objectives for the 2025 fiscal year.
This would represent a significant improvement from the current exchange rate of approximately N1,700 to the dollar, a move the president believes will be crucial to ensuring the smooth execution of the 2025 budget.
Tinubu made the announcement on Wednesday while presenting the 2025 Appropriation Bill to a joint session of the 11th National Assembly in Abuja. He detailed a comprehensive strategy to achieve this target, outlining a series of macroeconomic projections and reforms aimed at reducing inflation and strengthening the national currency.
In his presentation, Tinubu said, “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 N1,700 per dollar to N1,500. The base crude oil production assumption is set at 2.06 million barrels per day.”
The president’s economic projections are underpinned by several key policy initiatives and actions aimed at boosting Nigeria’s economic performance. These include reducing the country’s reliance on imported petroleum products, increasing exports of refined petroleum products, and achieving greater food security, which would reduce the need for food imports.
“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,”
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Tinubu explained. He added that improving Nigeria’s agricultural sector through enhanced security would contribute to greater self-sufficiency and reduce the nation’s dependency on food imports, further stabilizing the economy.
Another crucial aspect of the president’s strategy is increasing foreign exchange inflows through foreign portfolio investments. “We aim to increase foreign exchange inflows through foreign portfolio investments,” Tinubu said, underscoring the importance of attracting international investors to bolster Nigeria’s foreign reserves and provide stability to the naira.
Tinubu also emphasized that Nigeria’s crude oil output and exports would improve, in line with the government’s ongoing efforts to optimize production and reduce the costs associated with upstream oil and gas activities. “Our crude oil output and exports will improve, coupled with a substantial reduction in upstream oil and gas production costs,” he stated.
The president’s remarks reflect a broader strategy aimed at diversifying Nigeria’s economy, reducing its dependency on imports, and creating a more resilient and competitive economic environment. By addressing key sectors such as energy, agriculture, and foreign investment, the 2025 budget aims to set Nigeria on a path of sustainable growth and economic stability.
Tinubu’s target exchange rate of N1,500 to the dollar would mark a significant achievement in the government’s efforts to stabilize the nation’s currency and improve the business climate, signaling confidence in the government’s ability to address the country’s pressing economic challenges.
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