CBN Governor Yemi Cardoso has expressed optimism regarding Nigeria's economic prospects in 2024, despite the nation grappling with a substantial inflation rate of 27.33 percent in November 2023, the highest level observed in 18 years. Cardoso foresees a reduction in inflation for the forthcoming year and underscores expectations for alleviated pressure on the exchange rate.
Addressing the Joint Council on Banking, Insurance, and Other Monetary Organizations in Abuja, Cardoso highlighted the positive trajectory of the domestic economy. While acknowledging the persistence of inflationary pressures in the short term, he projected a decline in 2024. Furthermore, he anticipated a noteworthy mitigation of exchange rate pressures, attributing this to the effective operation of the foreign exchange market.
In his communication to the Joint Committees on Banking, Insurance, and Other Financial Institutions, along with Banking Regulations of the National Assembly, Governor Cardoso provided insights into the CBN's initiatives and the performance of the Nigerian economy. Acknowledging the expectation of diminished oil revenue in the upcoming year due to various factors, he outlined the challenges influencing this projection.
Regarding trade, Cardoso informed legislators that the total trade volume in the third quarter of 2023 amounted to N18.804.68 billion. Notably, he underscored the positive trade balance, revealing imports totaling N8.457.68 billion and exports amounting to N10.346.60 billion. This favorable trade balance is poised to contribute to an augmentation of external reserves, a pivotal indicator of economic stability.
To summarize, Governor Yemi Cardoso maintains a positive outlook on Nigeria's economic landscape for 2024, expressing confidence in a decline in inflation and alleviated pressure on the exchange rate. Despite challenges such as heightened inflation and anticipated reductions in oil revenue, the CBN is committed to steering the economy in a positive direction, with a particular emphasis on fortifying trade balance and bolstering external reserves for economic stability.
