How FG Plans to Achieve 15% Inflation by 2025

• The federal government aims to reduce inflation from 34.6% to 15% by 2025, implementing strategies like improved security and domestic refining
• Key measures include increasing agricultural output, attracting foreign investments, and enhancing oil production to stabilize the economy and lower inflation

The federal government has outlined strategies to achieve the projected 15% inflation rate in 2025, as included in the N49.7 trillion appropriation bill presented by President Bola Tinubu to the National Assembly.

In his address, President Tinubu described the budget as “ambitious but pragmatic,” while acknowledging the intense debate surrounding its feasibility.

He expressed confidence in the government’s ability to reduce inflation from 34.6% to 15%, alleviating the economic strain on Nigerians.

Providing insights, a senior presidency source highlighted several key measures:

1. Improved Security and Agricultural Output
   Enhanced security measures in 2024 will lead to a bumper harvest, reducing food prices and reliance on imports. This, the source explained, would ease inflationary pressures, especially in the food sector, which heavily influences the overall inflation rate.
2. Domestic Refinery Operations
   The commencement of domestic production of refined petroleum products will significantly lower the demand for foreign exchange needed for imports. Additionally, exporting refined products will boost forex earnings, helping to stabilize the naira.
3. Increased Oil Production and Cost Reductions
   A rise in oil output and reduced upstream production costs will generate more revenue and strengthen the country’s forex reserves.
4. Attracting Foreign Investments
   Improved macroeconomic stability and favourable policies will draw higher foreign portfolio investments. This increased forex supply will reduce exchange rate pressures and imported inflation.

The Director-General of the Lagos Chamber of Commerce and Industry (LCCI), Dr. Chinyere Almona, emphasized the importance of structural reforms to achieve these goals.

She noted that addressing food and energy supply chain bottlenecks, accelerating local petroleum production, and aligning monetary and fiscal policies will restore confidence in the naira and further ease inflationary pressures.

According to the presidency, these measures are key to ensuring a stable economy and achieving the ambitious inflation target set for 2025.