In a recent pronouncement, the Central Bank of Nigeria (CBN) projected a decline in the country’s inflation rate to 21.4% by 2024. This announcement was made by CBN Governor Olayemi Cardoso during the Nigeria Economic Group outlook for 2024. The governor expressed confidence that with the implementation of appropriate monetary policies, inflationary pressures in Nigeria would gradually ease in the coming months.
The CBN’s inflation-targeting policy is expected to play a pivotal role in stabilizing Nigeria’s economy, aiming to cap inflation at 21.4%. Cardoso emphasized that the anticipated reduction in inflation would have far-reaching implications, particularly for businesses. It is projected to create a more predictable cost environment, potentially leading to lower policy rates. This, in turn, is expected to stimulate investment, fuel economic growth, and generate employment opportunities across various sectors.
The latest report from the National Bureau of Statistics revealed that Nigeria’s inflation rate surged to 28.92% in December, with food inflation reaching a staggering 33.93%. Financial experts attribute the persistent inflationary trend to the removal of fuel subsidies and the fluctuation of the Naira in the foreign exchange market.
With the looming inflation challenges, Governor Cardoso is scheduled to convene the first Monetary Policy Committee meeting of 2024 on February 27. The meeting aims to deliberate and propose viable solutions to address the country’s inflation predicament.
As Nigeria anticipates a potential decrease in inflation, stakeholders and policymakers are closely monitoring the CBN’s proactive measures to steer the economy towards stability and sustainable growth.
