• Hausa Edition
  • Podcast
  • Conferences
  • LeVogue Magazine
  • Business News
  • Print Advert Rates
  • Online Advert Rates
  • Contact Us
Friday, July 4, 2025
Leadership Newspapers
Read in Hausa
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us
No Result
View All Result
Leadership Newspapers
No Result
View All Result

Naira Depreciation: N47.9trn Proposed 2025 Budget Lowest Since 2018 – Economists

by Leadership News and Kingsley Okoh
8 months ago
in Business
Share on WhatsAppShare on FacebookShare on XTelegram

The federal government’s proposed N47.9 trillion 2025 budget is the lowest the country has had since 2018 in dollar terms, economists at the Nigerian Economic Society (NES) have deduced.

Advertisement

President of NES, Adeola Adenikinju, in a statement, said the association said though the budget is at a record high in naira terms, the effect of naira devaluation has shrunk its value when converted to U.S. dollars.

“In nominal terms, the 2025 budget is the biggest naira value budget in Nigeria’s history. However, in terms of real purchasing power at constant U.S. dollars, this budget is the lowest since 2018,” the statement read.
Using the prevailing exchange rate of $1/N1, 679 rate, the proposed budget of N47.9 trillion translates to $27.96 billion, a 17.76 drop from the 2024 budget of $34 billion at constant dollar prices.

However, when the N1,400/$ used to peg the budget is computed, the value of the expenditure amounts to $34.14 billion which is still lower than the 2022 budget of N16.39 trillion at $39.8 billion and 2021’s N13.6 trillion at $35.66 billion.

Adenikinju noted that the benchmark exchange rate of N1, 400/USD though ambitious, is considered not fully grounded in the potential fiscal and monetary expectations in 2025 and deviates from major expert projections.
He explained that using this benchmark may require alternative supply sources of high and more stable forex earnings for building high external reserve stocks.
“The risks and uncertainties surrounding dependence on oil exports revenue do not justify a sudden rapid appreciation in the naira exchange rate in 2025,” the NES president said.

RELATED

ASO Savings Clears 10-yr Backlog Of Audited Accounts, Sustains Profitability Under New Mgt

ASO Savings Clears 10-yr Backlog Of Audited Accounts, Sustains Profitability Under New Mgt

1 hour ago
At LEADERSHIP Twitter Spaces: AMCON Creates Moral Hazard For Banking Industry – Analysts

AMCON Sells 60% Stake In Ibadan DisCo For N100bn

9 hours ago

“Average naira exchange rate projections by leading global financial institutions set the naira exchange rate at a base case scenario of N1,750/$1. From our own analysis, we project a base case exchange rate of N1,850/$1 in 2025,” he added.

Adenikinju recommended revising the oil price benchmark in the proposed budget from the current $75 per barrel to $70 per barrel in order to give room for adjustment should there be any major oil price shocks.

The NES explained that a fall in global oil prices is plausible considering Donald Trump’s rhetoric about intensified oil drilling efforts in the USA.

The economists also noted that the budget’s oil production benchmark set at 2.06 million barrels per day is feasible if the government intensifies its war on oil theft and pipeline vandalism.

“Oil price of $75/barrel appears to be conservative at current price trends, but it fails to account for a potential fall in oil price that may accompany the dousing of geopolitical tension under President Trump’s administration, as well as impact of ongoing rapid energy transition initiatives,” the statement read.

As of November 18, Brent Crude futures were trading around the $73 per barrel region, with the Nigerian crude oil variety Bonny Light trading around the $80 mark.

With US oil production projected to hit 14 million barrels per day in 2025, as well as the stoppage of OPEC+ oil production cuts by 2025 end, analysts have projected that oil may fall to as low as $40 per barrel in 2025.

Another theme that was strongly considered was the budget deficit. The FG is proposing a budget deficit of N13.8 trillion, which marks 3.87 per cent of the GDP, which is above the three per cent ceiling set in the Fiscal Responsibility Act of 2007.

NES advised the National Assembly to carry out a review of the country’s budget between 2021 and 2024, noting that the review can help to determine what the acceptable deficit limit is for 2025.

Analysis of current trends suggests that the actual deficit is likely to exceed projections. This is underscored by data from the 2024 budget, which, as of August 2024, indicated a budget deficit already reaching 7.5 percent of GDP.

The NES emphasised the urgent need for a more effective budgetary framework to address Nigeria’s core socioeconomic challenges.

Such a framework, they argue, must prioritise pressing macroeconomic issues, including stability, economic growth, job creation, and poverty reduction.

The risks to achieving these goals are deeply rooted in an unfavourable business environment characterised by insecurity, high inflation, naira scarcity and volatility, inadequate power and transport infrastructure, high logistics costs, and weak governance.

Adenikinju noted that addressing these critical issues in the budget could drive capital accumulation, attract substantial foreign direct investment and forex inflows, and empower farmers.

The 2025 budget allocates N7.72 trillion to capital expenditure, representing 16 percent of total spending—a figure significantly below the 50 percent benchmark recommended for developing countries.

Adenikinju noted that this low capital investment may have “limited impact on the growth of domestic infrastructure, employment, economic growth, poverty reduction and other welfare indicators highlighted earlier during the budget year.”


We’ve got the edge. Get real-time reports, breaking scoops, and exclusive angles delivered straight to your phone. Don’t settle for stale news. Join LEADERSHIP NEWS on WhatsApp for 24/7 updates →

Join Our WhatsApp Channel

BREAKING NEWS: Nigerians can now earn US Dollars from the comfort of their homes with Ultra-Premium domains, acquire them for as low as $1700 and profit as much as $25,000. Click here to learn how you can earn US Dollars consistently.


Tags: Naira Depreciation
SendShareTweetShare
Previous Post

Gov Eno Votes N50bn For Roads, Urges Contractors To Suspend Christmas Break

Next Post

Power Outage: 10 States Moved Into Electricity Market – Minister

Leadership News and Kingsley Okoh

Leadership News and Kingsley Okoh

You May Like

ASO Savings Clears 10-yr Backlog Of Audited Accounts, Sustains Profitability Under New Mgt
Business

ASO Savings Clears 10-yr Backlog Of Audited Accounts, Sustains Profitability Under New Mgt

2025/07/04
At LEADERSHIP Twitter Spaces: AMCON Creates Moral Hazard For Banking Industry – Analysts
Business

AMCON Sells 60% Stake In Ibadan DisCo For N100bn

2025/07/04
NADF Unveils Digital Tool To Track N19.5bn Agri-support Project
Business

NADF Unveils Digital Tool To Track N19.5bn Agri-support Project

2025/07/04
Business

FG Begins Vehicle Recycling Enforcement October, Eyes N60bn Annually

2025/07/04
Zenith Bank Emerges Most Sustainable Bank
Business

Zenith Bank Ranked Nigeria’s Top Tier 1 Bank

2025/07/04
GTCO, 7 Others Post N1.3trn Pre-tax Profit In Q1
Business

GTCO Raises $105m In Share Sale, To List On London Exchange

2025/07/04
Leadership Conference advertisement

LATEST

Election Outcomes: Yiaga Africa Backs New INEC Guidelines, Seeks Amendments

Tinubu Celebrates Olubadan Oba Olakulehin At 90

Netizens Blast Akwa Ibom Lawmaker For Comparing Coalition’s ADC To 2006 Plane Crash

ASO Savings Clears 10-yr Backlog Of Audited Accounts, Sustains Profitability Under New Mgt

Nico Williams Snub Barcelona, Signs 10-yr Athletic Bilbao Deal

Police Arrest 17, Kill 3 Suspected Kidnappers In Abuja

Ex-Arsenal Midfielder Partey Charged With Rape

NGE Suspends Senior Editor Over Ethical Infraction

2027: Ohanaeze Knocks Amaechi Over Attack On INEC Chairman

Edo Revenue Board Widens Tax Net To Capture More Payees

© 2025 Leadership Media Group - All Rights Reserved.

No Result
View All Result
  • Home
  • News
  • Politics
  • Business
  • Sport
  • Health
  • Entertainment
  • Opinion
    • Editorial
  • Columns
  • Football
  • Others
    • LeVogue Magazine
    • Conferences
    • National Economy
  • Contact Us

© 2025 Leadership Media Group - All Rights Reserved.