President Bola Tinubu has reiterated his administration’s strong commitment to reducing Nigeria’s inflation rate from its current level of 34.6% to 15% by the end of 2025. He made the pledge in his New Year address to Nigerians on Wednesday.
In his message, President Tinubu highlighted that the government’s efforts would be focused on increasing food production and promoting the local manufacturing of essential drugs and medical supplies to help curb inflation. He emphasized the government’s unwavering resolve to tackle the rising cost of living, stating, “We are resolute in our ambition to reduce inflation from its current high of 34.6% to 15%.”
The president also reflected on Nigeria’s economic progress in 2024, noting key achievements such as a gradual reduction in fuel prices, foreign trade surpluses in three consecutive quarters, and an increase in foreign reserves. He also pointed to the strengthening of the Naira against the US dollar, which has brought greater economic stability.
Tinubu further praised the growth of the stock market, which generated trillions of naira in wealth, and the rise in foreign investments, signaling renewed global confidence in Nigeria’s economic policies. However, he acknowledged that many Nigerian households continued to feel the strain of rising food and essential drug prices, a challenge his administration is determined to address in the year ahead.
Reflecting on the difficulties faced by Nigerians in 2024, Tinubu recognized the hardships many endured but expressed confidence in a brighter future. “Though 2024 posed numerous challenges to our citizens and households, I am confident that the New Year will bring brighter days. Economic indicators point to a positive and encouraging outlook for our nation,” he said.
The president’s remarks echo the projections made in his 2025 budget, presented on December 18, 2024, which aims to reduce inflation to 15% by next year. The ₦22 trillion budget includes significant funding for defense and security, infrastructure, health, and education, among other sectors.
Despite the ambitious goals, some analysts have expressed skepticism about the feasibility of achieving these targets, particularly the inflation reduction. When President Tinubu took office in May 2023, Nigeria’s inflation rate stood at 22.41%, according to the National Bureau of Statistics.
However, inflation surged to 34.6% by November 2024, a rise many economists attribute to the president’s controversial policies, including the removal of the petrol subsidy and the unification of the country’s foreign exchange rates.
Nevertheless, the president’s budget speech projected optimism, not only for inflation but also for the exchange rate, which he believes will improve from ₦1,700 per dollar to ₦1,500 per dollar by 2025.
While the outlook for 2025 remains uncertain, President Tinubu’s administration has pledged to remain focused on economic reforms aimed at stabilizing inflation and fostering growth in the coming year.
