The trajectory of Nigeria’s inflation has been a persistent ascent over the past eleven months, culminating in a peak in December 2023, as reported by the National Bureau of Statistics (NBS). In the backdrop of escalating prices across various sectors, particularly in essential commodities, the Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has offered reassurance to Nigerians regarding a forthcoming decline in the nation’s inflation rate.
During a session of sectoral deliberations on the economy convened by the House of Representatives, Governor Cardoso delivered a nuanced projection, asserting that inflationary pressures are poised to recede, with a targeted reduction to 21% envisaged for 2024. This anticipatory decline, he elaborated, is underpinned by the CBN’s strategic approach to inflation management, coupled with anticipated enhancements in agricultural output and ameliorated global supply chain dynamics.
In December 2023, the annual inflation rate surged to 28.92%, marking a notable escalation from the preceding month’s figure of 28.20%. Governor Cardoso emphasized the imperative of remedial action, attributing the surge to amplified demand pressures within the foreign exchange market, thereby exerting downward pressure on the value of the naira.
In addressing the conundrum of currency depreciation and its attendant ramifications, Governor Cardoso outlined a multifaceted approach, encompassing initiatives to fortify export earnings as a pivotal mechanism for buttressing the naira’s value. Additionally, he underscored the CBN’s commitment to engendering stability in both consumer prices and the foreign exchange market as integral components of its overarching strategy.
Against the backdrop of mounting concerns over economic stability and currency depreciation, Governor Cardoso’s discourse before the House of Representatives elucidated the CBN’s proactive stance in instituting measures designed to navigate the prevailing challenges. As Nigeria traverses the contours of fiscal exigency, the assurance of concerted governmental action offers a beacon of hope amidst the turbulence of economic uncertainty.
-26 September 2024
