Governor of the Central Bank of Nigeria, CBN, Olayemi Cardoso, has said they were prepared to use any “tools at our disposal” to manage inflation.
Cardoso said this at the ongoing FT Africa Summit 2024 in London. The event, scheduled for today, October 29, and tomorrow 30th at The Peninsula in London, brings chief executives, financiers, and politicians together to engage in discussions focused on driving investment into Africa.
Annual inflation in Africa’s most populous country accelerated in September for the first time in three months. It reached 32.70% (NGCPIY=ECI), opening a new tab, spurred by higher food and energy costs.
Price pressures have been exacerbated by the government’s decision to scrap petrol and electricity subsidies and to devalue the naira twice since President Bola Tinubu took over last year.
Cardoso
Cardoso told the FT Africa Summit in London that while he expected headline inflation to moderate in the coming months, food inflation was “proving stickier”.
However, the bank was working closely with the government to address this, he noted.
Nigeria must not slacken in its reform drive as it is beginning to attract “growing and serious interest” from foreign investors, Cardoso said.
He cited recent visits to the country by Citigroup CEO Jane Fraser and JPMorgan’s Jamie Dimon.
“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. REUTERS