'Be hopeful' — Emefiele promises stronger naira, prosperity for Nigerians in 2023

The governor of the Central Bank of Nigeria (CBN), Godwin Emefiele, has predicted brighter times for Nigerians.

According to him, the continuous inflation rate, which has affected Nigerians' purchasing power, will gradually reduce to less than 15% by the end of 2023.

Emefiele made the remarks over the weekend in Lagos at the 57th annual bankers' dinner hosted by the Chartered Institute of Bankers of Nigeria (CIBN).

Legit.ng had earlier reported that Nigeria's headline inflation accelerated to 21.09 per cent in October 2022, the highest level in over 10 years.

Nigeria to have a better 2023

Addressing the audience at the annual bankers' dinner, Emefiele emphasized that measures are in place to secure a better 2023 for Nigeria.

His words: “On the backdrop of our previous policy measures, and as the effect continues to permeate the system, our in-house model-based simulations indicate that inflation rate could fall steadily to less than 15 percent by end-2023."

BusinessDay reports Emefiele also noted that inflation expectations are rising as existing structural rigidities are compounded by global factors and anticipated elections-related liquidity upsurge, adding that for the rest of 2022 and towards mid-2023, Nigeria’s rate of inflation is projected to remain elevated and above the 12.5 per cent growth-aiding threshold. On foreign exchange, he stated"

"The CBN is determined to maintain its stable exchange policy stance over the next few months through innovative policy measures to manage the demand and supply of foreign exchange.

“If the current problem of oil theft is promptly corrected, we could expect a resumed inflow of crude oil receipts into the official reserves. This could foster gross stability in the foreign exchange market and enhance exchange rate stability."

The economy in 2023

The governor of the CBN also projected Nigeria’s growth to reach 3.7 per cent in quarter three and 3.47 by the fourth quarter.

According to him, based on the expectation of a robust non-oil performance, and barring any unforeseen shocks, the GDP growth rate is projected to remain positive in the remaining quarter of 2022 and during 2023.

He stated that continued efforts to embed indigenous productivity in high-impact real sector activities, particularly agriculture, Micro, Small and Medium Enterprises (MSMEs), and manufacturing, will boost non-oil sector performance. Domestic aggregate demand is expected to be boosted further by the upcoming budgetary outlay and surge in electioneering spending.

Monetary policy

On Monetary policy, he said over the coming years, monetary policy will remain focused on the objectives of price, monetary, and exchange rate stability.

Emefiele words: “Our policy stance will, accordingly, remain tight to curtail inflation pressure, regulate capital flows, and buoy the naira-dollar exchange rate. Monetary policy decisions will remain balanced, judicious, research driven, adequate and supportive of the real economy subject to underlying fundamentals.

He added:” We will maintain the current tight Monetary Policy stance in the near-term, especially in view of rising inflation expectations and exchange market pressures. Though we will act to appropriately adjust the policy rate in line with unfolding conditions and outlooks.