Media Talk Africa: Latest Headlines in Politics, Business, Sports, and More

The Central Bank of Nigeria (CBN) has projected a moderation in the country’s inflation in the coming months, driven by recent reforms that attracted a $24 billion inflow in the first quarter of 2024.

CBN Governor Olayemi Cardoso disclosed this in an interview with Bloomberg TV on Tuesday, highlighting the positive impact of the bank’s reforms on Nigeria’s liquidity, which increased by 40-50 percent compared to 2021.

“In terms of liquidity, especially on the foreign exchange side, we have seen an increase,” Cardoso said. “The first quarter of this year has resulted in a total inflow of about $24 billion, almost 40 to 50 percent more than the quarters up to about 2021. The tools are having a positive impact. So we believe that continuing on this trajectory, liquidity will continue to grow.”

In April, Nigeria recorded a total foreign portfolio inflow of N93.37 billion against a foreign outflow of N119.81 billion, marking a 415 percent increase compared to the same period in 2023.

Cardoso noted a deceleration in Nigeria’s inflation rate, which rose to 33.95 percent in May 2024. He emphasized the commitment of the Monetary Policy Committee (MPC) to reduce inflation rates, projecting continued moderation based on MPC decisions.

“So far from what we’re seeing, there’s a deceleration in inflation rates, which is good news,” Cardoso stated. “And my intuition is that with the measures that have been taken in the recent past, and with the confidence of the MPC members to watch the interest rate trajectory very closely, we should see a continuation of the moderation in the inflation rate.”