Federal Government of Nigeria has announced an ambitious plan to reduce inflation from its current rate of 34% to 15% by the end of 2025.
This initiative is part of the Federal Government of Nigeria (FGN) Budget 2025, which outlines a comprehensive strategy aimed at stabilizing the economy and improving living standards for millions of Nigerians.
The plan, as disclosed by a source within the Budget Office of the Federation, focuses on four key measures. First, the government intends to enhance security across the country to ensure a bumper agricultural harvest."Improved security will allow farmers to safely cultivate and transport their produce, driving down food prices and reducing dependency on imports," the source explained.
This approach aligns with the Central Bank of Nigeria's long-standing advocacy for prioritizing agricultural security as a means to combat inflation.
Secondly, the government plans to increase local refining capacity, thereby decreasing the reliance on foreign exchange for importing refined petroleum products.
The anticipated commencement of domestic production is expected to not only save forex but also boost foreign exchange earnings through the export of surplus refined products. "This strategy addresses one of the primary drivers of inflation—currency depreciation," the source noted.
Additionally, the government aims to optimize oil production and reduce upstream costs. By addressing pipeline vandalism and crude oil theft through advanced surveillance technologies, such as drones and satellite monitoring, the government hopes to secure oil installations and reduce disruptions. "Fostering collaboration with host communities by providing incentives and developmental projects will further enhance these efforts," the official added.
Finally, attracting investments into oil exploration and production is a vital component of the strategy. The government plans to implement investor-friendly policies, including competitive royalties and tax regimes, to draw both foreign and local investors into the sector. "These measures will enhance revenue generation and boost the nation’s foreign exchange reserves," the source emphasized.
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