The Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, has assured Nigerians that the nation’s high inflation rate will be decreased by a minimum of 15 percent by 2025.
Nigeria’s inflation rate increased for the fourth consecutive month in December 2024, rising to 34.80% on an annual basis, up from 34.60% in November, as reported by the National Bureau of Statistics last week.
The Minister, while addressing the Senate Committee on Finance during this year’s Budget defense on Monday in Abuja, the nation’s capital, expressed optimism that the 2025 budget estimates of N47.9 trillion, particularly concerning revenue, will be achieved with the anticipated robust economy.
He stated that reducing inflation, while a key responsibility of monetary policy advocated by the Central Bank of Nigeria (CBN), is attainable.
The Central Bank of Nigeria projects a 15 percent inflation rate by the end of 2025. This goal is attainable, and we are diligently working towards it. We anticipate reaching this target.
“The indication of anticipated inflation levels has informed the current interest rate; however, it is important to recognize that we all have a role to fulfill.”
“While monetary policy may assist in reducing inflation, it is crucial on the fiscal front to contribute to this effort not only by constraining demand but also by enhancing supply.”
“Enhancing food supply is a key commitment that has been established. Currently, we are in the midst of the dry season harvest, and we have mobilized 250,000 farmers to produce 750,000 metric pounds of various grains from this season’s farming efforts.”
Mr. Edun stated that under President Bola Tinubu, the country’s economy is experiencing positive growth, with a decreasing budget deficit as a percentage of Gross Domestic Product (GDP) and an improving debt service ratio relative to revenue.
“After eighteen to twenty months, under the capable and forward-thinking leadership of President Bola Tinubu, we have been motivated as a nation to reaffirm our commitment and patience, reaching a point where the economy is significantly improving and experiencing growth.” The budget deficit as a percentage of Gross Domestic Product (GDP) is decreasing, while the debt service ratio as a percentage of revenue is showing improvement.
During his opening remarks, the Chairman of the Senate Committee on Finance, Senator Sani Musa, emphasized the importance for Ministries, Departments, and Agencies (MDAs) to submit a budget that is realistic, implementable, focused, and designed to achieve measurable outcomes.
Senator Musa emphasized that the budget for the MDAs must have a defined objective and result in measurable advantages for the public upon execution.
He stated that it is the duty of the legislature to guarantee the efficient and transparent distribution of government resources to promote development and address the needs of the populace, noting that the Ministry of Finance is essential in formulating economic policies and fiscal strategies.
“The consequences of this action will be felt across all sectors, and therefore, this budget must embody prudence, accountability, and alignment with the priorities of the populace.”
“We recognize the difficulties involved in managing the requirements of your responsibilities alongside the resources at your disposal.”
“However, as stewards of public resources, it is our collective duty to ensure that everyone contributes significantly to our common objectives.
“This session provides a platform for MDAs to discuss the challenges they encounter, backed by clear data and justifiable expenditures. The process is collaborative rather than adversarial, as we all aim to enhance the economic well-being of our country,” Musa stated.
In attendance at the session were the Accountant General of the Federation, Oluwatoyin Madein, and the Chairman of the Fiscal Responsibility Commission (FRC), Mr. Victor Muruako.
President Bola Ahmed Tinubu last year presented a budget proposal of N49.7 trillion for the 2025 fiscal year, projecting a decrease in inflation, which has been on the rise, to 15 percent in the 2025 proposal.
