The Minister of Finance and Coordinating Minister of the Economy, Mr. Olawale Edun, has reassured Nigerians that the nation’s high inflation rate will be reduced by at least 15 percent in 2025.
Nigeria’s inflation rate rose for the fourth straight month in December 2024, advancing to 34.80% in annual terms from 34.60% in November, according to data from the statistics agency last week.
The Minister who stated this while addressing the Senate Committee on Finance on this year’s Budget defence, on Monday in Abuja, the nation’s capital 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, 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.”
In his opening remarks, the Chairman Senate Committee on Finance, Senator Sani Musa urged Ministries, Departments and Agencies (MDAs) to present a budget that is realistic, implementable, focused and tailored towards the attainment of measurable outcomes.
Senator Musa said the MDAs budget should have a clear purpose and translate to tangible benefits for the populace on implementation.
According to him, it was the responsibility of the legislature to ensure efficient and transparent allocation of government resources to drive development and needs of the people, adding that the Ministry of Finance plays a foundational role in shaping economic policies and fiscal strategies.
“The impact of this action will be released across all sectors, and as such, this budget must reflect prudence, accountability, and alignment with the priority of the people.
“We understand the challenges you face in balancing the demands of your mandate with available resources.
“However, as custodians of the public costs, it is our collective responsibility to ensure that every one contributes meaningfully to our shared goals.
“This session is an opportunity for MDAs to address the challenges they face supported by clear data and justifiable expenditures, this process is not adversarial but collaborative as we all share the common goal of advancing the economic well-being of our country,” Musa said.
Present at the session were the Accountant General of the Federation, Oluwatoyin Madein and Chairman, Fiscal Responsibility Commission (FRC), Mr Victor Muruako.
President Bola Ahmed Tinubu last year presented a N49.7 trillion budget proposal for the 2025 fiscal year, projecting inflation which has been soaring to drop to 15 percent in the 2025 proposal.
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