Nigeria central bank targets 21% inflation, seeks to support naira


“Nigeria’s Central Bank Strategizes to Tackle Soaring Inflation and Currency Challenges”

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ABUJA, Jan 24 – Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) articulated the bank’s commitment to curbing inflation and fortifying the undervalued naira currency. With inflation reaching a staggering 28.92% in December, the highest in over 27 years, Cardoso faces mounting pressure to make critical decisions during the upcoming rate-setting meeting, the first since assuming office in September.

“Inflationary pressures are anticipated to ease in 2024, driven by the CBN’s inflation-targeting policy aiming to stabilize inflation at 21.4%,” remarked Cardoso in a speech shared by the central bank via email. He emphasized that enhanced agricultural output and relief from global supply chain pressures would contribute to increased consumer confidence and purchasing power.

Cardoso’s tenure signifies a shift towards a more conventional monetary policy approach, departing from the unconventional strategies of his predecessor, Godwin Emefiele. The adoption of an inflation-targeting framework in November sets the tone for a recalibrated approach.

President Bola Tinubu’s reforms, including the removal of a petrol subsidy and relaxation of currency trading restrictions, have been implemented since assuming office last year. However, Nigeria grapples with a forex shortage, leading to a substantial gap between official and parallel market exchange rates.

Cardoso expressed confidence in the undervalued naira, anticipating that coordinated measures on the fiscal side would expedite genuine price discovery, contributing to a more balanced and stable exchange rate. The CBN aims to enhance liquidity in the foreign exchange market, with a commitment to clearing outstanding FX obligations, having already paid at least $2 billion of the estimated $7 billion owed.

Godwin Okafor
Godwin Okafor
Godwin Okafor is a veteran Financial Journalist, Internet Social Entrepreneur, and the visionary Founder of Naija247news Media Limited. With an extensive career spanning over 16 years in financial journalism, Godwin possesses a wealth of experience that seamlessly bridges both traditional and digital media landscapes. His journey in journalism commenced at Business Day, Nigeria, where he laid the foundation for his prolific career. In 2010, Godwin took a bold step by founding Naija247news Media, a platform that has since become a prominent player in delivering timely and accurate news. Educationally, Godwin Okafor holds a Bachelor's degree in Industrial Relations and Personnel Management from the prestigious Lagos State University, Ojo, Lagos. His commitment to continuous learning led him to the Lagos Business School, where he further honed his skills. Additionally, he is recognized as a Fellow of the University of Pennsylvania, having successfully completed the Wharton Seminar for Business Journalists. Throughout his illustrious career, Godwin has earned acclaim by winning numerous journalism awards, a testament to his dedication to excellence in reporting. Beyond his role as a Financial Journalist, Godwin Okafor wears the hat of the Chairman at Emmerich Resources Limited, the publishing entity behind Naija247news. His visionary leadership has played a pivotal role in shaping the media landscape and establishing Naija247news as a trusted source of information. Godwin Okafor's multifaceted expertise, commitment to journalistic integrity, and leadership in the realm of business journalism underscore his influential presence in both the media and entrepreneurial spheres.

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