Naira undervalued, says CBN Governor

Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said the apex bank is implementing “inflation targeting policy” to reduce the inflationary pressures from the current 28.9% to 21.4 per cent in 2024.

Cardoso said this would have a profound impact on businesses and reflate the economy in a way that more jobs would be created.

He spoke while delivering his keynote address at the launch of the Nigerian Economic Summit Group (NESG) 2024 Macroeconomic Outlook Report presented in Lagos on Wednesday.

Cardoso who joined the event virtually also highlighted various steps being taken to achieve economic stability in 2024, saying the CBN would remain focused on clearing the forex backlogs and stabilising the exchange rate.

Overtime the cost of living crisis has worsened over the rising inflation which reached its peak in 2023 currently at 28.9 per cent.

But Cardoso stated that the economic outlook for 2024 remains positive on the strength of the various reforms being undertaken by the federal government.

“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.”