The Central Bank of Nigeria ( CBN), has raised the confidence of Nigerians as the year 2023 winds down assuring that the soaring Inflation and Exchange Rates will drastically decline in 2024.
The Apex bank also said it is expecting less revenue from oil exports in the fiscal year, just as it put the total trade from the Nigerian Foreign Exchange Market (NFEM), at N18.804b in the third quarter (Q3) of 2023.
“Inflation pressures may persist in the short-term but is expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of foreign exchange market.”
The Governor of the Apex Bank, Olayemi Cardoso indicated in his presentation to the National Assembly Joint Committee on Banking, Insurance and other Financial Institutions.
According to the RoyalTimes, he told members of the joint committee from both chambers of the National Assembly, that the outlook for the domestic economy in Nigeria for 2024 is very positive as both the Inflation and Exchange rates, would withstand fluctuating pressures on them and get stabilized.
He said : “We expect less revenue from oil exports due to the production limit of 1.78mbpd in 2024. OPEC approved quota for Nigeria is 1.8mbpd, which is higher than the 2024 budget assumption.”
“However, the country’s production has been below these thresholds. The budget benchmark for 2023 was 1.69mbpd, but the highest level of production during the year, was about 1.35mbpd in Q3 of 2023.”
“The reasons for the underperformance of the oil production target , include , crude oil theft and pipeline vandalization, production shut – ins and divestments by major oil companies.”