- CBN Predicts 9 Percent Inflation By 2020
The Central Bank of Nigeria (CBN) has predicted that for the rest of 2019 and towards mid-2020, the nation’s inflation rate would fall to 9 percent or less.
The apex bank Governor, Godwin Emefiele stated this during a presentation at the second Nigeria-Canada Investment Summit, on Monday, in Abuja.
“Though we do not expect a single-digit outcome by end-2019, due to inherent inertia, it would traverse towards the bank’s 6 – 9 percent tolerance range by 2020,” he said.
The National Bureau of Statistics (NBS) had reported that the Consumer Price Index (CPI), which measures the inflation rate, increased from 11.02 percent year-on-year in August to 11.24 percent in September.
This can, however, be attributed to the border that has been shut by the Federal Government.
Speaking on the border closure, he stressed the need to support the banning of importation before it wrecks the nation’s economy, saying “if we do not kill unnecessary imports, imports will kill us all.”
Emefiele explained that the much-needed jobs in the country are exported, due to excessive imports. He pointed out that “without jobs, we promote crime, kidnapping and terrorism.”
He further said that the apex bank would continue to work closely with the fiscal authorities to target double-digit growth by the next five years.
“The CBN under my watch will use monetary policy to rebalance our imports, promote job creation and lay a solid foundation for double-digit growth in Nigeria,” he assured.
Emefiele added that the restriction of access to forex supply on 43 items that could be produced locally, has supported the improved productivity of the manufacturing sector, as the CBN Purchasing Managers’ Index remained in positive territory for 31 months.
The apex bank governor noted that: “We have been able to keep real GDP growth positive and have avoided a double-dip recession in contrast to some other emerging markets economies.
He added: “Monetary policy will remain proactive, appropriate and research-driven with robust forward guidance elements. The bank will continue to creatively accommodate the needs of the various end-users, particularly, manufacturers and other priority stakeholders in support of the macroeconomic objectives of creating employment, making the economy competitive and promoting growth.
“Development finance initiatives designed to raise domestic production, stimulate non-oil export and increase foreign exchange earnings will also continue.
“Most importantly, we will continue to compel banks to undertake their statutory licensed roles of financial intermediation. In this regard, the recently announced policy to raise the domestic loan-deposit ratio from 57 percent to 60 percent by end-September and to 65 percent by end-December 2019 would be sustained, intensified and resolutely implemented.
“This we believe will help to support greater growth and improved investment into the Nigerian economy.”