See FG exchange rate target for 2024 as expert says its unrealistic, gives reasons

• The Nigerian government has set a targeted naira against the dollar exchange rate expected in 2025
• The rate which is contained in the 2025 Budget Proposal that has been approved by the Federal Executive Council (FEC)
• Expert has reacted to the exchange rate projection captured in the budget describing it as very unrealistic

The Federal Executive Council (FEC) has approved N47.9 trillion for the 2025 budget, executing capital projects and managing the Federal Government's recurrent expenditures.

The Minister of Budget and National Planning, Senator Atiku Bagudu, disclosed this in a briefing to State House media after the meeting.

FG targets N1,400 to $1 exchange rate Photo credit: Benson Ibeabuchi
Source: Getty Images

The proposed 2025 budget will have an exchange rate pegged at N1,400 to $1, and the government is targeting a GDP growth of 6.4%, Punch reports.

Senator Atiku Bagudu said:

"The fiscal objectives were deliberately conservative, as we aim to carefully assess the trajectory, even though we expect the projections to be surpassed. "The budget size approved for presentation to the National Assembly in the MTEP is N47.9 trillion, with N9.2 trillion in new borrowings planned to finance the budget deficit for 2025."

Naira exchange rate

The naira is currently exchange at at above N1,690.37/$1 in the Nigerian Autonomous Foreign Exchange Market (NAFEM).

In the parallel market, traders told Legit.ng that the naira exchanges at N1,740/$1.

Expert says 2025 exchange rate is unrealistic

A financial expert, Prof. Uche Uwaleke, has described the N1,400 to the dollar exchange rate proposed in the N47.9 trillion 2025 budget as unrealistic.

Uwaleke, who serves as the Director of the Institute of Capital Market Studies at Nasarawa State University and President of the Capital Market Academics of Nigeria, expressed concerns over the projection.

He noted that such an unrealistic exchange rate target could create significant opportunities for off-budget funds.

He said.

"I believe the exchange rate of N1,400 to the dollar is unrealistic, considering a one-year outlook on foreign exchange flows."This creates a gap in the 2025 budget implementation, potentially allowing for significant off-budget funds."

Pastor Adeboye predicts naira will bounce back

Legit.ng earlier reported that Adeboye prophesied the possibility of the Nigerian currency bouncing back against the dollar with greater influence.

Adeboye revealed the prophecy at the RCCG's monthly Thanksgiving service on Sunday, with the theme 'Uncommon Miracles'.

According to the religious leader, there was a period when Nigeria's currency completely favoured the US dollar.

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Source: Legit.ng