The Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, has projected that Nigeria’s high inflation rate will be reduced to at least 15 per cent in 2025.
Edun expressed this optimism while addressing the Senate Committee on Finance during the Budget defence exercise on Monday, January 20, 2025 in Abuja.
He expressed optimism that the 2025 budget estimates of N47.9 trillion, particularly with regards to the revenue will be achieved with the expected strong economy.
He said reducing inflation, though was a key responsibility for monetary policy championed by the Central Bank of Nigeria (CBN) is achievable.
“The Central Bank of Nigeria is indicating a 15 percent inflation rate by the end of 2025, it is achievable, we are working hard towards it, and we look forward to achieving it.
“And it is their signaling of where inflation is expected to lie that has given us this interest rate, however, we all have a role to play.
“Even if monetary policy helps to try to bring down inflation, however, on the fiscal side, it is important that we contribute to lower inflation, not just by really squeezing demand, but by increasing supply.
“Increasing supply of food is one of the major commitments that is already laid out, we are having a dry season harvest now, and we have mobilised 250,000 farmers to be able to produce 750,000 metric pounds of assorted grains from the dry season farming”.
Mr. Edun also said that under President Bola Tinubu, the country’s economy is growing positively as the budget deficit as a percentage to Gross Domestic Product, GDP, is falling while the debt service ratio as percentage to revenue is improving.
“After eighteen to twenty months, under the able and visionary leadership of President Bola Tinubu, we have been inspired as a nation to re-determination forbearance arrive at the situation where the economy is very much turning the corner, it is growing. The budget deficit as percentage to Gross Domestic Product, GDP, is falling while debt service ratio as percentage to revenue is improving.”