“The committee expressed optimism that lifting refined petroleum products from Dangote refinery will moderate transportation costs and significantly support the easing of food price pressures in the short to medium term. This is also expected to moderate foreign exchange demand for the importation of refined petroleum products, with a positive spillover on external reserve and improvement in the overall balance of payment position,” he said.

Mr Cardoso also said an assessment of the performance of Nigeria’s financial institutions indicated that they were stable.

“Members assessed the performance of key financial soundness indicators and noted with satisfaction that in spite of familiar headwinds, the banking industry remains safe, sound, and stable. The committee, however, emphasised the need to sustain supervisory oversight on the industry to strengthen its continued support to the economy,” he said.

Regarding food inflation, Mr Cardoso said the upside risks remained flooding, hikes in energy prices, scarcity of petrol, and, most importantly, insecurity in farming communities. He said that considering the weight of food in the consumer price index (CPI) basket, the MPC recognised the federal government’s efforts in addressing insecurity in farming communities.

The apex bank governor stressed the need to remain steadfast. ” In addition, the MPC applauded the ongoing effort of the Federal Government to bridge the food supply deficit through the duty-free import window for food commodities,” he said. (NAN)