CBN plans 21.4% inflation rate in 2024- Cardoso

The Governor, Central Bank of Nigeria (CBN), Mr Olayemi Cardoso says the bank’s target in 2024 is bring inflation rate down to 21.4 per cent.

In his address at the launch of the Nigerian Economic Summit Group (NESG) 2024 Macroeconomic Outlook Report in Lagos on Wednesday, Cardoso said inflationary pressures are expected to come down in 2024 due to the CBN’s inflation-targeting policy, which aims to rein in inflation to 21.4 percent.

Cardoso said, it will be aided by improved agricultural productivity and the easing of global supply chain pressures, benefiting businesses by boosting consumer confidence and purchasing power.

“The CBN’s adoption of the inflation-targeting framework involves clear communication, use of monetary policy instruments, and collaboration with fiscal authorities to achieve price stability, fostering market confidence and positively influencing consumer behaviour.

“The outlook for decreasing inflation in 2024 will have a profound impact on businesses, providing a more predictable cost environment and potentially leading to lowered policy rates, stimulating investment, fuelling growth, and creating job opportunities.

Speaking on foreign exchange, the CBN Governor noted that the apex bank is partnering with the Ministry of Finance and the NNPCL to ensure that all foreign exchange inflows are returned to the Central Bank.

“This coordinated effort will greatly enhance the Bank’s FX flows and contribute to the accretion of reserves,” he stated.

He stated that, “This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage. The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors.

The CBN Governor maintained that “Upholding the integrity of financial markets is crucial for building confidence. With the completion of an independent forensic review and the subsequent clearance of the backlog of valid FX transactions, we remain steadfast in our commitment to decisively address any infractions and abuses.”