CBN assures Nigerians of better inflation, exchange rates in 2024

Central Bank of Nigeria (CBN) has reassured the citizenry that the soaring inflation and exchange rates would drastically reduce in 2024. The apex bank expects less revenue from oil exports in the fiscal year, just as it puts the total trade from Nigerian Foreign Exchange Market (NFEM) at N18.804 billion in the third quarter of this year.

Its governor, Olayemi Cardoso, gave the assurance and breakdown when he appeared before the National Assembly Joint Committee on Banking, Insurance and other Financial Institutions in Abuja.

He told the lawmakers that the outlook for the domestic economy next year was very positive, as both the inflation and exchange rates would withstand fluctuating pressures, and stabilise thereafter.

Cardoso explained that unification of the exchange rate windows in June this year has ushered in a new approach to management geared at reducing arbitrage, rent-seeking behaviour and speculation in the market.

He added that due to prevailing factors, less revenue would be earned from oil exports in 2024. His words: “We expect less revenue from oil exports due to the production limit of 1.78mbpd in 2024. OPEC approved quota for Nigeria is 1.8mbpd, which is higher than the 2024 budget assumption.

“However, the country’s production has been below these thresholds. The budget benchmark for 2023 was 1.69mbpd, but the highest level of production during the year was about 1.35mbpd in Q3 of 2023.

“The reasons for the underperformance of the oil production target include crude oil theft and pipeline vandalisation, production shut-ins and divestments by major oil companies.”

Earlier the committee chairman, Senator Tokunbo Abiru (APC: Lagos East), said the interactive session was organised for statutory briefing by the CBN in line with extant laws. Co-chairman, Bahir Bello El-Rufai, Cardoso and his management team for putting in place measures to stabilise the economy.