January 25, (THEWILL) – The Governor of, the Central Bank of Nigeria (CBN), Olayemi Cardoso, has disclosed that the Apex Bank was working to reduce the headline inflation rate to 21.4 percent in 2024.
This, he said, will be aided by improved agricultural productivity and the easing of global supply chain pressures, benefiting businesses by boosting consumer confidence and purchasing power.
Cardoso disclosed these, in his address at the launch of the Nigerian Economic Summit Group (NESG), 2024 Macroeconomic Outlook Report in Lagos on Wednesday.
“Inflationary pressures are expected to decline in 2024 due to the CBN’s inflation-targeting policy, which aims to rein in inflation to 21.4 per cent. This will be aided by improved agricultural productivity and the easing of global supply chain pressures, benefiting businesses by boosting consumer confidence and purchasing power.
“The CBN’s adoption of the inflation-targeting framework involves clear communication, use of monetary policy instruments, and collaboration with fiscal authorities to achieve price stability, fostering market confidence and positively influencing consumer behaviour.
“The outlook for decreasing inflation in 2024 will have a profound impact on businesses, providing a more predictable cost environment and potentially leading to lowered policy rates, stimulating investment, fuelling growth, and creating job opportunities.
“The anticipated moderation in pump prices of Premium Motor Spirit (PMS), due to the expected operational status of the country’s key government and privately owned refineries in 2024 is a pivotal factor in the economic equation.
“Additionally, the Bank has reverted to the conventional monetary policy approach with a focus on attaining price stability, which fosters sustainable economic growth for Nigeria.
Speaking on foreign exchange, the CBN Governor noted that the Apex Bank is partnering with the Ministry of Finance and the NNPCL to ensure that all foreign exchange inflows are returned to the Central Bank.
“This coordinated effort will greatly enhance the Bank’s FX flows and contribute to the accretion of reserves.
“This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing arbitrage opportunities. The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.
“Upholding the integrity of financial markets is crucial for building confidence. With the completion of an independent forensic review and the subsequent clearance of the backlog of valid FX transactions, we remain steadfast in our commitment to decisively address any infractions and abuses”, he added.
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