The Central Bank of Nigeria (CBN) has admitted that the inflation rate in the country is unacceptably high, but said there are signs its monetary policy will change the economic situation.
The CBN Governor, Olayemi Cardoso, stated this during the 2024 annual bankers dinner in Lagos organised by the Chartered Institute of Bankers of Nigeria (CIBN).
headline inflation rate rose to 33.88 per cent in October from the 32.70 per cent recorded in September, according to the National Bureau of Statistics (NBS) report.
Cardoso expressed concern over the high inflation, hinting that there would be a downtrend in 2025.
“I fully recognise the challenges that higher interest rates impose on businesses and families. However, these measures are not intended to be permanent. We are closely monitoring the data and as inflation shows sustained signs of improvement, something we expect in the near future, we will adjust rates accordingly.
“Our tight monetary policy stance has altered the previous dire trajectory and we expect a downward trend in 2025. Inflation remains unacceptably high, but the signs are encouraging, particularly given that the full effects of monetary policy typically take six to nine months to impact the consumer sector,” he said.
