Nigeria’s Finance Minister and Coordinating Minister of the Economy, Mr. Olawale Edun, has delivered a reassuring forecast for the nation’s struggling economy. Speaking before the Senate Committee on Finance in Abuja during the 2025 budget defense, he pledged a significant reduction in the country’s inflation rate by at least 15% by the end of 2025.
Currently, Nigeria battles a climbing inflation rate that reached 34.80% in December 2024, the highest in four months, according to the National Bureau of Statistics (NBS). This relentless rise has strained households and businesses, but Edun’s optimism signals a shift in the economic trajectory.
“The Central Bank of Nigeria projects a 15% inflation rate by the end of 2025,” Edun stated during the session. “This goal is achievable, and we are making concerted efforts to reach it. Monetary policy plays a critical role in managing inflation, but fiscal measures will complement these efforts by improving supply and curbing demand.”
Path to Lower Inflation
Edun highlighted several measures aimed at achieving this ambitious target. Chief among them is boosting food production, a sector central to Nigeria’s inflationary pressures. He revealed that 250,000 farmers have been mobilized during the dry season harvest to produce 750,000 metric tons of grains.
“Enhancing food supply is a key commitment. With proper coordination between fiscal and monetary policies, we will see a gradual reduction in inflation,” he added.
The minister also noted that the administration of President Bola Tinubu is already recording positive economic strides. “After 18 to 20 months under President Tinubu’s leadership, the economy is showing signs of growth. The budget deficit as a percentage of GDP is shrinking, and the debt service-to-revenue ratio is improving,” he said.
Tinubu’s 2025 Budget and Economic Vision
In October 2024, President Tinubu unveiled a N49.7 trillion budget proposal for the 2025 fiscal year. The budget emphasizes fiscal discipline, reduced borrowing, and growth-oriented policies. It also projects inflation easing to 15%, a target described as “ambitious but necessary” by analysts.
Chairman of the Senate Committee on Finance, Senator Sani Musa, stressed the importance of implementing a budget that delivers tangible results. “This budget must embody prudence, accountability, and alignment with the needs of Nigerians,” Musa stated during the budget defense.
He called on Ministries, Departments, and Agencies (MDAs) to present actionable plans that are both realistic and measurable. “As stewards of public resources, it is our collective duty to ensure these funds are used to meet the people’s needs. This session is an opportunity to align our priorities and achieve economic progress,” Musa added.
Challenges and Stakeholder Commitments
Despite the optimism, challenges remain. Rising costs of living, supply chain disruptions, and global economic uncertainties have put Nigeria in a precarious position. However, key government agencies, including the Ministry of Finance and the Central Bank, are doubling down on efforts to stabilize the economy.
Oluwatoyin Madein, the Accountant General of the Federation, and Victor Muruako, Chairman of the Fiscal Responsibility Commission, were also present during the Senate session. Both pledged to uphold transparency and efficiency in managing public funds.
“The consequences of our fiscal decisions will be felt across all sectors. It is imperative that our economic policies address the priorities of Nigerians,” said Muruako.
Public Reaction and Expectations
While the government’s plans have been met with cautious optimism, citizens and experts alike are eager to see the implementation of these policies. Many are concerned about the immediate effects of inflation on food prices, transportation, and healthcare.
Economists have emphasized the need for robust measures to support local industries and reduce reliance on imports. “The key to sustained economic growth lies in addressing structural issues, particularly in agriculture and energy,” said Dr. Bala Adekunle, a Lagos-based economic analyst.
A Ray of Hope Amidst Challenges
Despite the hurdles, Edun’s remarks offer a glimmer of hope for Nigerians weary of economic instability. The coordinated approach between fiscal and monetary policies, coupled with agricultural reforms, could pave the way for economic recovery.
As Senator Musa aptly put it, “The journey may be long, but with shared commitment and accountability, we can achieve a stronger economy for all Nigerians.”
For now, all eyes remain on the government’s ability to translate its ambitious plans into actionable results. If successful, a 15% drop in inflation would not only boost Nigeria’s economic outlook but also provide much-needed relief for millions of citizens.
