Inflation will reduce to 21.4% in 2024 says CBN

NIGERIA’s inflation is expected to drop to 21.4 per cent in 2024, the Central Bank of Nigeria Governor, Olayemi Cardoso, has said.

The governor said this at the Launch of the Nigerian Economic Summit Group (NESG) 2024 Macroeconomic Outlook Report, according to a statement issued via the Bank’s handle on X on Wednesday, January 24.

The ICIR reported how the Nigerian inflation rate rose to 28.92 per cent as of December 2023, noting a consistent pattern of rise throughout the year.

According to the CBN governor, the forex market reform by the Bank aims to streamline and unify multiple exchange rates, foster transparency, and reduce arbitrage opportunities. 

The CBN boss emphasised that the apex bank was committed to improving liquidity in the foreign exchange market, reassuring investors and stakeholders of positive economic change.

“We are implementing a comprehensive strategy to improve liquidity in our FX (forex) markets in the short, medium, and long term. Our focus is on addressing fundamental issues that have hindered the effective operation of our markets over the years.

“Investors, both local and foreign, and other stakeholders can rest assured that the economy will transition to a new state of stability in the short-to-medium term as we recalibrate our policy toolkits and implement far-reaching measures.

    “The NESG 2024 Report resonates with the recently launched CBN strategic plan for the next five years! Our commitment to ensuring stability, promoting inclusive growth, and fostering financial sector resilience remains unwavering,” he said.

    Cardoso also noted that prioritizing transparency in the exchange rate system was crucial for stability and fair determination of rates.

    For 2023, Nigeria’s inflation rate started at 21.82 per cent in January and consecutively rose to 28.92 per cent as of the last record in December 2023. 

    The ICIR reported how policies by President Bola Tinubu since he assumed power in May 2023 have affected the inflation rate despite several palliative measures.

    Usman Mustapha is a solution journalist with International Centre for Investigative Reporting. You can easily reach him via: [email protected]. He tweets @UsmanMustapha_M

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