The Governor of the Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso, said that the apex bank is working to reduce the headline inflation rate to 21.4 per cent this year.
Cardoso gave this assurance in a keynote address at the launch of the Nigeria Economic Summit Group 2024 Economic Outlook report.
The inflation rate rose to 28.92 per cent at the end of 2023, representing a 7.58 percentage point increase from 21.34 per cent at the end of 2022.
Cardoso, however, averred that the inflation-targeting policy of the CBN, aided by improved agricultural productivity as well as an expected reduction in the pump price of petroleum products, will help reduce inflationary pressures in 2024.
He said: “The anticipated moderation in pump prices of Premium Motor Spirit (PMS) due to the expected operational status of the country’s key government and privately owned refineries in 2024 is a pivotal factor in the economic equation.
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The expected stabilisation or reduction in fuel costs is poised to have far-reaching implications across various sectors, contributing significantly to overall economic efficiency and resilience.
“Inflationary pressures are expected to decline in 2024 due to the CBN’s inflation-targeting policy, which aims to rein in inflation to 21.4 per cent. This 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, the 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, fueling growth, and creating job opportunities.
“Additionally, the Bank has reverted to the conventional monetary policy approach with a focus on attaining price stability, which fosters sustainable economic growth for Nigeria.”