Nigerias Naira Faces Challenge as Economists Question 2025 Budget Benchmark

Economists have expressed skepticism over the Nigerian government's pegging of the naira at N1400 to a dollar in its 2025 budget, amid concerns about currency stability. The forecast contradicts projections of depreciation.

Economists have expressed skepticism over the government's new benchmark of N1400 to the US dollar for the 2025 budget, citing concerns about the ongoing struggle of the naira to stabilize amidst projections of depreciation. The Medium Term Expenditure Framework, released recently, sets this peg, which could further erode investor confidence and exacerbate economic instability. Critics argue that such a fixed exchange rate may not be feasible in current market conditions, where the naira is already facing downward pressure. The move has raised eyebrows among economists, who are urging for more flexible monetary policies to address the challenges facing the country's economy.