Mr. Olayemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), has announced the bank’s commitment to lowering the headline inflation rate to 21.4% in the current year. Cardoso made this statement during the launch of the Nigeria Economic Summit Group 2024 Economic Outlook report.
The inflation rate had risen to 28.92% by the end of 2023, marking a 7.58 percentage point increase from the previous year’s figure of 21.34%. Despite this, Cardoso expressed confidence that the CBN’s inflation-targeting policy, coupled with improved agricultural productivity and an expected reduction in the pump price of petroleum products, would contribute to lowering inflationary pressures in 2024.
Cardoso highlighted the anticipated stabilization or reduction in fuel costs, attributed to the expected operational status of key government and privately owned refineries in 2024, as a crucial factor in the economic equation. The reduction in fuel costs is expected to have wide-ranging implications across various sectors, enhancing overall economic efficiency and resilience.
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He emphasized that the CBN’s inflation-targeting framework involves clear communication, the use of monetary policy instruments, and collaboration with fiscal authorities to achieve price stability, fostering market confidence and positively influencing consumer behavior. The anticipated decline in inflation in 2024 is expected to benefit businesses by providing a more predictable cost environment, potentially leading to lowered policy rates, stimulating investment, fueling growth, and creating job opportunities.
Additionally, the CBN has reverted to a conventional monetary policy approach with a focus on achieving price stability for sustainable economic growth in Nigeria.
