The Central Bank of Nigeria (CBN) on Thursday, conveyed optimism regarding the country’s 2024 domestic economic prospects. The apex bank said there will be substantial relief from both inflation and exchange rate pressures, which have contributed to a challenging economic climate in the West African nation.
During an interactive session with the Senate and House of Representatives Joint Committee on Banking, Insurance, and Other Financial Institutions in Abuja, CBN Governor Olayemi Cardoso stated:
“The outlook for the domestic economy remains positive and is expected to maintain a positive trajectory for 2024. Inflation pressures may persist in the short term but are expected to decline in 2024.
“Exchange rate pressures are also expected to reduce significantly with the smooth functioning of the foreign exchange market,”
The CBN Chief also noted that, owing to certain prevailing domestic factors, lower revenues are anticipated from oil exports in the upcoming year.
“In the third quarter of 2023, Total Trade reached N18.804.68 billion, with exports valued at N10.346.60 billion and total imports at N8.457.68 billion. This resulted in a favorable trade balance, contributing to an increase in external reserves.
“We anticipate reduced revenue from oil exports in 2024 due to the production limit of 1.78 mbpd. Although the OPEC-approved quota for Nigeria is 1.8 mbpd, exceeding the 2024 budget assumption,” he explained.
In November 2023, the nation’s inflation rate surged to 27.33%; marking the highest in nearly two decades.
Nigeria, Africa’s most populous nation, currently grapples with various economic challenges, including elevated inflation pressures and the depreciation of the naira.
Many Nigerians have resorted to emergency loans to meet immediate needs.
Despite calls from the country’s labour unions, including threats of strikes, to increase the minimum wage to at least N100,000 a month, the government has yet to take action
In October 2023, President Bola Tinubu approved a provisional minimum wage of N35,000 a month for civil servants.