Nigeria’s inflation rate ‘ll fall steadily in 2023 – Emefiele

Governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has assured Nigerians that on the backdrop of previous policy measures, and as the effect continues to permeate the system, CBN’s inhouse model-based simulations indicate that inflation rate could fall steadily to less than 15 percent by end-2023.

Emefiele who stated this at the 57th annual bankers’ dinner organized by the Chartered Institute of bankers of Nigeria (CIBN) in Lagos, insisted that the persistent inflation rate, which has impacted the purchasing power of Nigerians, could fall steadily to less than 15 per cent by the end of 2023

Nigeria’s headline inflation accelerated to the highest level in 17 years to 21.09 per cent in October 2022, from 20.77 per cent in the previous month.

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Emefiele noted that inflation expectations are rising as existing structural rigidities are compounded by global factors and anticipated elections-related liquidity upsurge, adding that for the rest of 2022 and towards mid-2023, Nigeria’s rate of inflation is projected to remain elevated and above the 12.5 per cent growth-aiding threshold.

On foreign exchange, he said the CBN is determined to maintain its stable exchange policy stance over the next few months through innovative policy measures to manage the demand and supply of foreign exchange.

“If the current problem of oil theft is promptly corrected, we could expect a resumed inflow of crude oil receipts into the official reserves. This could foster gross stability in the foreign exchange market and enhance exchange rate stability,” he said.

The governor of the CBN also projected Nigeria’s growth to reach 3.7 per cent in quarter three and 3.47 by the fourth quarter.

According to him, based on the expectation of a robust non-oil performance, and barring any unforeseen shocks, the GDP growth rate is projected to remain positive in the remaining quarter of 2022 and during 2023.