Central Bank of Nigeria Forecasts Decline in Inflation and Exchange Rate Pressures for 2024

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The Central Bank of Nigeria (CBN) has expressed optimism that the country's inflation rate and exchange rate pressures will experience a reduction in 2024. This positive outlook comes in the wake of the nation's inflation rate surging to 27.33% in November, marking the highest level in 18 years.

Governor Yemi Cardoso of the CBN shared this projection during a session with the Joint Committee on Banking, Insurance, and Other Financial Institutions in Abuja. Despite the recent inflation challenges, Cardoso anticipates a decline in inflation pressures in the short term and expects the exchange rate pressures to significantly reduce with the smooth functioning of the foreign exchange market.

Highlighting the overall economic outlook for 2024, he stated, "The outlook for the domestic economy remains positive and is expected to maintain the positive trajectory for 2024." Furthermore, Cardoso acknowledged the anticipation of reduced oil revenue in the coming year.

Providing context, he presented trade data for the third quarter of 2023, revealing that total trade amounted to N18.804.68 billion. Notably, exports were valued at N10.346.60 billion, while total imports stood at N8.457.68 billion, resulting in a positive trade balance that is expected to contribute to an increase in external reserves.

This forecast and economic overview were presented as part of the CBN's strategic planning for the coming year, addressing key factors such as inflation, exchange rates, and trade balances.