ABUJA, Dec 18 (Reuters) – Nigeria’s inflation is expected to fall sharply to around 15% next year from 34.6% in November, helped by lower imports of petroleum products, President Bola Tinubu said on Wednesday.
In his second budget speech since being elected, Tinubu said spending priorities in 2025 would include security, infrastructure and measures to ease a cost-of-living crisis.
He said the 2025 spending plan of 47.90 trillion naira included a budget deficit of 3.89% of gross domestic product, approximately 13.0 trillion naira.
“The reforms we have instituted are beginning to yield results, no reversals,” Tinubu said in a televised speech.
Inflation quickened sharply in the second half of last year after Tinubu devalued the naira currency NGN=D1 and cut subsidies on petrol to try to lift economic growth and shore up public finances.
These actions intensified the most severe cost-of-living crisis in decades in Africa’s most populous country.
To combat rising inflation, the central bank has raised interest rates six times this year, totalling an increase of 875 basis points.
Tinubu said foreign exchange reserves stood at around $42 billion against a healthy trade surplus, but that 15.18 trillion naira would be needed in 2025 for debt service.
(Reporting by Camillus Eboh; Writing by Chijioke Ohuocha; Editing by Christina Fincher and Alex Richardson)
