Nigeria Central Bank Targets 21% Inflation, Prioritizes Naira Support

Mouad Boudina
Mouad Boudina
1 Min Read
NAIRA

Governor Olayemi Cardoso announced on Wednesday that the Central Bank of Nigeria is targeting a reduction in inflation to approximately 21%. Furthermore, concerted efforts will be made to enhance the value of the nation’s undervalued currency, the naira.

Pressure mounts on Governor Olayemi Cardoso to consider an increase in interest rates as the Central Bank of Nigeria (CBN) convenes its rate-setting meeting next month. This marks the first such meeting since Cardoso assumed office in September.

Cardoso articulated in a speech, a copy of which was disseminated via email by the central bank, that anticipations point towards a reduction in inflationary pressures throughout 2024. This projection aligns with the Central Bank of Nigeria’s inflation-targeting policy, which seeks to curtail inflation to 21.4%.

Additionally, Cardoso emphasized that enhanced agricultural output and the alleviation of global supply chain constraints are poised to bolster consumer confidence and augment purchasing power.

Under Cardoso’s leadership, Nigeria’s central bank is anticipated to adopt a more conventional monetary policy stance, marking a departure from the unconventional policies implemented by his predecessor, Godwin Emefiele.

Mouad Boudina

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