HomeBusiness#NEWS: CBN Governor Cardoso Predicts Substantial Inflation Drop to 21% in 2024:...

#NEWS: CBN Governor Cardoso Predicts Substantial Inflation Drop to 21% in 2024: Addresses House of Reps

The Central Bank of Nigeria Governor (CBN), Yemi Cardoso, faced a contentious session on Tuesday during his appearance before the House of Representatives for the sectoral debate.

Numerous lawmakers expressed dissatisfaction with the governor’s handling of the naira, which has witnessed a persistent decline in recent months.

In his presentation, Cardoso elaborated on the challenges affecting the naira, attributing them to factors such as the substantial demand from students studying abroad.

He highlighted that over 100,000 students are currently pursuing education overseas, with Nigerian students spending $28.5 billion outside the country between 2010 and 2020.

Additionally, he noted a considerable expenditure of $11.06 billion on medical tourism during the same period.

Despite these explanations, several lawmakers voiced concerns about the naira’s management, the relocation of certain CBN departments to Lagos, and the removal of 43 items from the foreign exchange (FX) window.

Sada Soli, a House member from Katsina State, expressed apprehension that lifting the ban on the 43 items could lead to the unnecessary importation of goods that Nigeria can produce locally, citing the potential importation of cement.

In response to the concerns about the 43 items, Cardoso clarified that the Central Bank supported their removal because import and export policies fall under the purview of the Ministry of Finance.

He emphasized that the CBN does not determine who imports or not, reiterating the need to abide by their designated responsibilities.

Looking ahead to 2024, Cardoso outlined expectations of a decline in inflationary pressures due to the CBN’s inflationary targeting policy, aiming to bring inflation down to 21.4%.

He highlighted the potential contributions of improved agricultural productivity and reduced global supply chain pressures.

However, he acknowledged the current challenges facing the Nigerian foreign exchange market, with increased demand causing a continuous depreciation of the naira’s value.

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