The Federal Government has announced an ambitious plan to reduce Nigeria’s inflation rate from the current 34% in 2024 to a targeted 15% by the end of 2025. This strategy, spearheaded by the Budget Office of the Federation, is embedded in the Federal Government of Nigeria’s (FGN) 2025 budget plan and outlines a multi-pronged approach to achieve the target.
A key pillar of the plan involves enhancing security across the country to support agricultural productivity. By ensuring that farmers can safely cultivate and transport their produce, the government aims to boost food supply and lower food prices, which significantly influence the overall inflation rate.
“The food segment plays a critical role in inflation control,” a source explained. The Central Bank of Nigeria (CBN) has consistently advocated for prioritizing agricultural security as a means to stabilize food prices and reduce the nation’s reliance on imports.
Another major focus is increasing Nigeria’s local refining capacity. The anticipated start of domestic production of refined petroleum products is expected to reduce the demand for foreign exchange (forex) for imports, easing pressure on the naira.
“By saving forex and exporting surplus refined products, foreign exchange earnings will rise, strengthening the currency and addressing inflation caused by currency depreciation,” the source stated.
In the oil and gas sector, the government aims to optimize crude oil production while reducing upstream production costs. Strategies include deploying advanced surveillance technologies such as drones and satellite monitoring to curb pipeline vandalism and crude oil theft. Additionally, the government plans to foster collaboration with host communities by providing developmental projects and incentives to secure oil installations.
“These measures will enhance crude oil output, improve operational efficiencies, and boost revenue,” a Budget Office official explained. Efforts to attract investments into oil exploration and production through investor-friendly policies like competitive royalties and tax regimes are also expected to drive growth in the sector.
The government further intends to attract foreign portfolio investments by promoting macroeconomic stability and implementing investor-friendly reforms. Increased forex inflows from such investments are expected to stabilize the exchange rate and reduce imported inflation.
“A stabilized exchange rate will make imported goods more affordable for Nigerians,” the source added.
This coordinated effort between fiscal and monetary policies aims to address structural and external factors driving inflation. The Central Bank of Nigeria has repeatedly called for fiscal interventions to complement monetary efforts, and the 2025 budget reflects this alignment.
The Federal Government acknowledges that achieving these inflation reduction targets requires sustained commitment to reforms, robust monitoring, and evaluation mechanisms. If implemented successfully, these strategies could significantly stabilize Nigeria’s economy and offer relief to millions of citizens grappling with high living costs.
https://eyewitnessngr.com/fg-maps-ambitious-plan-to-cut-inflation-from-34-to-15-in-2025/
The FGN Budget 2025 represents a roadmap toward economic stabilization and growth, presenting an opportunity for a turning point in Nigeria’s fight against inflation.
Adeleke Damilola (ACTION) is a versatile content writer with expertise in news writing and a seasoned media professional and broadcast specialist. Currently serving as News Editor for DNews Info, Damilola is also the CEO of the ACTION brand, committed to shaping lives and establishing a legacy of excellence for present and future generations.
