Nigeria’s inflation will cool off as CBN reforms attract $24bn inflow – Cardoso

Nigeria’s inflation will cool off as CBN reforms attract $24bn inflow – Cardoso

The Central Bank of Nigeria, CBN, has projected that Nigeria’s inflation will moderate in the coming months as its reforms attracted a $24 billion inflow into the country in the first quarter of 2024 alone.

CBN governor, Olayemi Cardoso disclosed this in an interview with Bloomberg TV on Tuesday.

He noted that recent reforms by the apex bank have helped firm up the country’s liquidity by 40-50 percent more than the figure recorded in 2021.

“In terms of liquidity, especially on the foreign exchange side, we have seen an increase.

“The first quarter of this year has resulted in a total inflow of about $24bn. Now, this is almost 40 to 50 percent more than the quarters up to about 2021.

“The tools are having a positive impact. So we believe that continuing on this trajectory, we believe that liquidity will continue to grow,” he noted.

Recall that In April, Nigeria recorded a total foreign portfolio inflow of N93.37 billion against a foreign outflow of N119.81 billion, marking a 415 percent increase compared to the same period in 2023.

Speaking further, Cardoso said there was a deceleration in Nigeria’s inflation rates which rose to 33.95 percent in May 2024.

According to him, the Monetary Policy Committee will continue to do everything to bring down the country’s inflation rates.

He projected the likelihood of inflation moderation in the coming on the back of MPC decisions.

“So far from what we’re seeing, there’s a deceleration in inflation rates, which is good news.

“And my intuition is that with the measures that have been taken in the recent past, and with the confidence of the MPC members to watch the interest rate trajectory very closely. We should see a continuation of the moderation in the inflation rate,” he said.

Nigeria’s inflation will cool off as CBN reforms attract $24bn inflow – Cardoso