The CBN Governor, Mr Godwin Emefiele, said this on Tuesday
in Abuja, when he read the communique issued at the end of the 290th meeting of
the Monetary Policy Committee (MPC) meeting of the apex bank.
According to Emefiele, the improved performance of the economy
has been driven largely by sustained growth in the services and agricultural
sectors.
He also cited a rebound in economic activities associated
with economic recovery and continued intervention in growth enhancing sectors
by the CBN as responsible for the growth.
“Staff projections showed that output growth recovery is
expected to continue into 2023 and 2024.
“The Committee, however, observed with concern, the marginal
increase in headline inflation in February 2023, to 21.91 per cent, from 21.82 per
cent in January 2023, a 0.09 percentage point increase.
“This increase was attributed largely to a minimal rise in
the food component to 24.35 per cent in February 2023, from 24.32 per cent in
January 2023.
“The core component moderated to 18.84 per cent in February
2023 from 19.16 per cent in January 2023,” he said.
Emefiele said that the shocks to the food component of
inflation were driven by high cost of transportation of food items.
He said that lingering security challenges in major
food-producing areas and legacy infrastructural problems, which continue to
hamper food supply logistics were also responsible.
“Broad money supply (M3) grew by 13.14 per cent in February
2023, below the 2023 provisional annual benchmark of 17.18 per cent.
“This was driven largely by the growth in Net Foreign Assets
(NFA), which was attributed to the increase in foreign asset holdings of the
CBN and decrease in foreign claims on Other Depository Corporations (ODCs).
“Money market rates reflected the tight liquidity conditions
in the banking system.
“Consequently, the monthly weighted average Open Buyback
(OBB) and Inter-bank Call rates increased to 12.74 and 12.54 per cents in
February 2023, from 10.14 and 10.35 per cent in January 2023,” he said.
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