Governor Olayemi Cardoso of the Central Bank of Nigeria (CBN) stated that they are ready to employ any “tools at our disposal” to manage inflation.
Cardoso made this remark during the ongoing FT Africa Summit 2024 in London.
The event, taking place today, October 29, and tomorrow, October 30, at The Peninsula in London, gathers chief executives, financiers, and politicians to engage in discussions aimed at promoting investment in Africa.
In September, annual inflation in Africa’s most populous country increased for the first time in three months, reaching 32.70%, driven by rising food and energy costs.
The price pressures have been intensified by the government’s decision to eliminate petrol and electricity subsidies, as well as the devaluation of the naira on two occasions since President Bola Tinubu assumed office last year.
During the FT Africa Summit in London, Cardoso expressed his expectation that headline inflation would moderate in the upcoming months, although he noted that food inflation was “proving stickier.”
He emphasized that the bank is collaborating closely with the government to tackle this issue.
Cardoso highlighted that Nigeria must not ease its reform efforts, as the country is beginning to attract “growing and serious interest” from foreign investors.
He referenced recent visits to Nigeria by Citigroup CEO Jane Fraser and JPMorgan’s Jamie Dimon as evidence of this interest.
“There’s an enormous amount of interest now, recognizing the fact that the Nigerian currency is relatively moderated and has made our economy a lot more competitive,” Cardoso added.
Meanwhile, the Naira is worth only a quarter of its value when Tinubu took office, while fuel prices are five times higher.
However, Cardoso said measures introduced by the CBN to restore investor confidence were working.
He also said there were now “minimal” complaints about lack of access to foreign exchange compared to “before, when only a handful of people could get it”.
“With the reforms that are being taken right now, it will put Nigeria in a far better position to see the increase on the growth side,” he said.
