Nigeria’s inflation crisis will ease in the months ahead, according to the governor of the Central Bank of Nigeria (CBN), Godwin Emefiele.
What’s the evidence to support the projection?
The CBN governor made the projection on Friday while speaking at the 57th yearly bankers’ dinner in Lagos. Noting that efforts made to boost supply-side factors had started yielding results, Emefiele expressed confidence that the inflation rate in the country will drop below the 15% mark by the end of 2023. “We are confident of a sustained period of disinflation in the coming months”, he said.
Naira redesign already yielding results
The projection is encouraged by Nigeria’s economic growth, which Emefiele says has demonstrated the resilience of the non-oil sector that is supported by favourable monetary and fiscal policies. While stating that the Naira redesign has started yielding the intended results, Emefiele reiterated that the deadline for phasing out the old banknotes remains January 31, and urged those hoarding the old notes to take them to banks for new ones. On diversification of the economy, he called for “innovative decision-making” that will insulate the economy from external shocks.