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Inflation rate will drop to 21 percent 2024 as Tinubu directs intervention to check food security: Cardoso

Mr. Femi Gbajabiamila, Chief of Staff (CoS) to the President (centre), Ministers and Other Top Government Officials at the Meeting in the State House, Abuja, FCt

*Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria, assures consumers that inflation rate will drop to 21 percent in the West African country as the Bank’s inflationary targeting policy is aiming to rein in inflation to 21.4 percent, reinforced by improved agricultural productivity and easy global supply chain pressures

Isola Moses | ConsumerConnect

As prices of foodstuffs, other essential consumer products and commodities increase in the market places across the country in recent times, Dr. Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has assured Nigerians that inflation rate will drop to 21 percent in the West African country in 2024.

ConsumerConnect reports Dr. Cardoso, who disclosed this development while briefing Federal lawmakers Tuesday, February 6, 2024, at the sectoral debate on the Nigerian economy in the House of Representatives, National Assembly (NASS), in Abuja, FCT, specifically said the country’s inflation would reduce to 21 percent this year.

Rising prices of foodstuffs and other consumer items a matter of concern to Nigerians 

On the banking sector regulator’s outlook for this year, the CBN Chief stated: “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 percent, aided by improved agricultural productivity and easy global supply chain pressures.

“The Nigerian Foreign Exchange market is currently facing increased demand pressures causing a continuous decrease in the value of Naira.”

It is noted the Nigeria headline inflation has been on the rise for 11 consecutive months, reaching a new high in December 2023, according to the National Bureau of Statistics (NBS).

The annual inflation rate rose to 28.92 percent December from 28.20 percent in November 2023. The headline inflation rate indicated an increase of 0.72 percent points when compared to the November 2023 headline inflation rate.

Besides Cardoso, who appeared before the House of Representatives, in Abuja, the legislators also quizzed Mr. Wale Edun, Honourable Minister for Finance and Coordinating Minister of the Economy; Abubakar Bagudu, Minister for Budget and National Planning, as well as Mr. Zacch Adedeji, Executive Chairman of the Federal Inland Revenue Service (FIRS).

CBN focused on stability in consumer prices, Forex market, says Cardoso

Cardoso further stated that the Bankers’ Bank already had unveiled pro-active measures to address the apparent persistent decline in the value of the Naira in the Foreign Exchange (Forex) market in recent times.

On such measures to boost the value of the Naira, the national currency, the CBN Governor, however, emphasised the Nigerian economy “must earn through export” to boost the naira.

Dr. Cardoso further informed the members of the House of Representatives that the CBN plans to instill confidence in the country’s economy through stability in consumer prices and the Foreign Exchange market respectively.

He equally noted that the policy measures of the Bank are expected to impact inflationary trend in the country positively.

In the course of the week, there have been protests in some parts of the country over the rising cost of food and living.

Reports also indicated that mass demonstrations held in Niger and Kano states, prompting calls for urgent action to arrest the spiralling prices of essential food items for consumers.

Tinubu directs intervention to check food shortage

Meanwhile, in line with the CBN’s measures at addressing the declining value of the Naira and attendant headline inflation, President Bola Ahmed Tinubu has directed the Federal Government to provides a food intervention to check food shortage in the country.

Muhammed Idris, Honourable Minister for Information and National Orientation, said this in the State House, Abuja, after a meeting of the Presidential Committee on Emergency Food Intervention, convened by Mr. Femi Gbajabiamila, Chief of Staff (CoS) to the President.

Idris stated the government is concerned about what Nigerian consumers are going through currently, as the authorities are taking some steps to ensure they get some relief.

In attendance at the meeting are Minister of Agriculture, Abubakar Kyari; Minister of State for Agriculture, Mustapha Shehuri; the Minister of Budget and Planning, Atiku Bagudu; National Security Adviser, Nuhu Ribadu; and Dr. Cardoso, Governor of the Central Bank of Nigeria, among others.

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