Amidst the escalating prices of essential goods and commodities in the market, Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has provided reassurance to Nigerians regarding a potential drop in the nation’s inflation rate.
Nigeria has witnessed a continuous rise in inflation for 11 consecutive months, reaching its peak in December 2023 as reported by the National Bureau of Statistics (NBS).
In December, the annual inflation rate surged to 28.92 percent from 28.20 percent in November, marking a 0.72 percent increase in the headline inflation rate compared to November 2023.
Speaking during a sectoral debate on the economy before the House of Representatives, Governor Cardoso specifically projected a reduction in inflation to 21 percent.
Highlighting the outlook for 2024, he stated, “Inflationary pressures are anticipated to ease in 2024 owing to the CBN’s inflation targeting policy aimed at curbing inflation to 21.4 percent, supported by enhanced agricultural productivity and alleviated global supply chain pressures.”
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“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”
Governor Cardoso, along with other top government officials, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Abubakar Bagudu; and the Executive Chairman of the Federal Inland Revenue Service (FIRS), Zacch Adedeji, was summoned by the lower chamber to discuss the state of the economy and the recent depreciation of the naira.
He further elaborated that the CBN has introduced measures to tackle the persistent depreciation of the naira, emphasizing the necessity for the economy to generate revenue through exports to bolster the national currency.
Additionally, he outlined the CBN’s plans to foster confidence through stability in consumer prices and the foreign exchange market, expressing confidence that the bank’s policy measures would have a positive impact on inflation.