The CBN governor has said that the cost of petrol will fall after the various refineries in the country commence production He said that NNPCL, the apex bank, and the finance minister are working together to guarantee the return of FX inflow to CBN According to the CBN governor, the naira is currently undervalued on the parallel market at N1370 to the dollar
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso has said that the pump prices of Premium Motor Spirit (PMS) petrol will moderate this year as government and private-owned refineries begin operation.
He said this on Wednesday, January 24, at the launch of the Nigerian Economic Summit Group’s (NESG) 2024 Macroeconomic Outlook Report in Lagos.
According to the CBN governor in a The Nation report, the anticipated stabilization or decline in fuel costs is expected to have significant effects on a variety of sectors and also significantly enhance resilience and general economic efficiency.
He said that the naira, currently around N1,370 to the dollar, is undervalued at the parallel market. “We believe that the naira is currently undervalued and, coupled with coordinated measures on the fiscal side, we will expedite genuine price discovery in the near term,” he said. On Inflation He stated that the CBN’s inflation-targeting strategy, which aims to keep inflation under control at 21.4 percent, is projected to reduce inflationary pressures in 2024.
He said this will benefit businesses by increasing consumer confidence and purchasing power. He said it will also be aided by increased agricultural output and reduced global supply chain demand. He clarified that the CBN’s implementation of the inflation-targeting framework entails working with fiscal authorities, communicating clearly, and utilizing monetary policy tools to achieve price stability, boost consumer confidence, and influence market behavior. “The outlook for decreasing inflation in 2024 will have a profound impact on businesses, providing a more predictable cost environment and potentially leading to lowered policy rates, stimulating investment, fueling growth, and creating job opportunities.”
According to Cardoso, the anticipation of stability in the foreign exchange market for 2024 can be ascribed to the decrease in imports of petroleum products and the CBN’s recent adoption of an exchange rate policy dictated by the market. “This reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing arbitrage opportunities. The resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investment, elevating Nigeria’s appeal to global investors,”
By Zainab Iwayemi-Legit
