Inflationary pressures to decline in 2024- Cardoso
The Central Bank of Nigeria (CBN) has said that inflationary pressures being experienced in the country is expected to decline in 2024.
According to the Apex Bank, its inflation targeting policy aims to rein in inflation to 21.4 percent.
The CBN Governor, Olayemi M. Cardoso who disclosed this. In Lagos at the official launch of the Nigerian Economic Summit Group (NESG) 2024 Macroeconomics outlook report said that 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.
He said 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.
He explained that 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, fueling growth, and creating job opportunities. Additionally, he said the Bank has reverted to the conventional monetary policy approach with a focus on attaining price stability, which fosters sustainable economic growth for Nigeria.
On the foreign exchange initiatives, he said “the expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum product imports and the recent implementation of a market-determined exchange rate policy by the CBN.
“This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.
“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.”
He said the apex bank is implementing a comprehensive strategy to improve liquidity in our forex markets in the short, medium, and long term and their focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years.
He stated that the launching of a new 5 year Strategy for the Central Bank of Nigeria for the period 2024-2028 that provides a clear roadmap for achieving our mandates anchored on the following themes; Price Stability and Monetary Policy Effectiveness, Robust and Resilient Financial System, Governance, Compliance, and Advisory to Government.
He said the NESG economic transformation roadmap delineates three distinct phases: Stabilisation, Consolidation, and Acceleration, with sequential steps and policy priorities aimed at fostering robust and sustainable economic transformation.
The identification of potential “Inflection Points” is crucial for strategic decision-making. This is also commendable as, I believe we are as a nation at the point of stabilisation. If the goals of the stabilisation phase are achieved, they will have a significant and immediate impact. This phase is focused on stabilising macroeconomic indicators such as inflation rate, GDP growth, fiscal balance, and exchange rate, which are essential for steering the country towards economic recovery and laying the groundwork for long-term economic transformation.
