The Central Bank of Nigeria (CBN), Olayemi Cardoso, has assured Nigerians that the current inflation rate will drop to 21% this year. According to the National Bureau of Statistics (NBS), Nigeria’s inflation has been on the rise for 11 consecutive months, reaching a new high in December 2023.
This is coming amid the rising prices of foodstuff and other commodities in the market, which has resulted in protests in some states.
The annual inflation rate rose to 28.92 percent in December from 28.20 percent in November. The headline inflation rate showed an increase of 0.72 percent points when compared to the November 2023 headline inflation rate.
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But briefing lawmakers at the sectoral debate on the economy before the House of Representatives, the CBN governor specifically said inflation will reduce to 21%.
Giving an outlook for 2024, he said: “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 percent, aided by improved agricultural productivity and easy global supply chain pressures.
“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”
Cardoso is one of the top government officials who was summoned by the lower chamber over the state of the economy as well as the free fall of the naira recently.
Others quizzed were 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.
Cardoso explained that the apex bank has unveiled measures to address the persistent decline in the value of the naira.
According to him, the economy must earn through export to boost the naira He said the CBN plans to instill Confidence through stability in consumer prices and the foreign exchange market.
He believes that the policy measures of the bank are expected to impact positively on inflation.
