CBN Projects 12% Rise In Inflation

The Central Bank of Nigeria (CBN), has projected a rise in inflation to 12 percent, but expects the economic variable to subsequently moderate in reaction to gains from agriculture and the manufacturing sectors.

CBN governor Godwin Emefiele made the projections while explaining his post-elections agenda for the economy, noting that monetary policies will be adjusted in line with the unfolding conditions and outlook.
“On the monetary policy, the current tight stand is expected to continue in the near term especially in view of the rising inflation expectations.

“Nigeria’s Inflation rate is expected to rise slightly to about 12 per cent and then moderate downwards thereafter due to productivity gains in the agriculture and manufacturing sector.”
Emefiele also highlighted efforts at pushing the gross domestic products by promoting indigenous productions, with a focus on agriculture and manufacturing sectors.

“On GDP, we have continued efforts at driving indigenous production in high impact real sector activities especially agriculture and manufacturing. The GDP is expected to pick up in the first quarter of the year. These were buoyed by anticipated budgetary and electioneering expending which took place in Q1 2019. GDP is projected to rise to 3 per cent for the year 2019.

“The CBN will look to adjust policy rate in line with unfolding conditions and outlook. We would also continue to ensure that the policy interest rate is delicately set to balance the objectives of price stability with output stabilisation.

March 22, 2019