The Central Bank of Nigeria (CBN) is setting its sights on reducing inflation to 21.4 percent in 2024.
CBN Governor, Mr. Olayemi Cardoso, speaking virtually during the Nigerian Economic Summit Growth (NESG)’s macro economic outlook projection in Lagos, outlined policies aimed at alleviating inflationary pressures, anticipating a positive impact on businesses and a revitalized economy leading to increased job creation.
He emphasized the CBN’s commitment to addressing forex backlogs and stabilizing the exchange rate as part of the measures for economic stability in 2024.
Despite the peak inflation of 28.9 percent in 2023 contributing to a cost of living crisis, Mr. Cardoso expressed optimism about the economic outlook, citing ongoing reforms by the federal government.
The inflation-targeting policy involves clear communication, monetary policy instruments, and collaboration with fiscal authorities.
Mr. Cardoso highlighted the expected decline in inflation for 2024, facilitated by improved agricultural productivity and eased global supply chain pressures. This, in turn, is anticipated to boost consumer confidence, enhance purchasing power, and create a more predictable cost environment for businesses.
Furthermore, the collaboration between the CBN, Ministry of Finance, and the Nigerian National Petroleum Company Limited (NNPCL) aims to ensure that all foreign exchange (FX) inflows are returned to the Central Bank. According to Mr. Cardoso, this coordinated effort will significantly enhance the bank’s FX inflow and boost reserves.
