• Login
  • Register
Nairametrics
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
No Result
View All Result
Nairametrics
No Result
View All Result
Home Business News

Brace for impact as CBN expects inflation to rise to 12%

Fakoyejo OlalekanbyFakoyejo Olalekan
4 years ago
in Business News, Politics
CBN, Key lending rate, CBN to boost creative industry with N22 billion , CBN increases LDR to 65%, sets December deadline, External reserves drop by $3.2 billion in Q3’19 , Banks' loans to Oil and Gas, Power, other sectors drop by N411.8 billion 
Share on FacebookShare on TwitterShare on Linkedin

Governor of the Central Bank of Nigeria, Mr Godwin Emefiele, has disclosed that the country’s inflation rate could rise to 12 percent. However, this will not have any effect on the current monetary policy stance of the Apex bank, he said

As a matter of fact, the CBN insists on maintaining the monetary policy because of the projected inflation rate. The inflation rate stood at 11.31 percent in February 2019, according to statistics by the CBN and the National Bureau of Statistics (NBS).

Emefiele made the disclosure during his presentation at the Businessday post-election economic agenda conference which held in Lagos on Thursday.

“The CBN has set the post-election agenda for the nation’s monetary policy, projecting that the current monetary policy stance of the bank is expected to continue while inflation is estimated to rise to 12 per cent and moderate thereafter.”

How does this affect you: The possible rise in inflation rate is coming at a time the Federal Government and the legislature have agreed to a minimum wage of N30, 000 for Nigerian labour workers. If or when the inflation rate rises, it may trigger an increase in the cost of living. This is because hike in prices influences inflation rate.

Recall that Nairametrics had also reported that the Federal Inland Revenue Services is considering raising the Value Added Tax (VAT); although FIRS has since denied the report. If these rises in Inflation rate and VAT eventually occur, then the value of the proposed minimum wage increment becomes ineffectual.

CBN considering adjustment in policy rates

While the projected 12 percent rise in inflation rate would encourage the CBN to maintain its monetary policy, unfolding conditions and outlooks will influence the apex bank to make changes in the policy, Emefiele said.

Building on 2018 policy framework: The Central Bank intends to continue from where it left off in 2018. Emefiele said the goal is to ensure that the policy interest rate is set to balance the objectives of price stability with output stabilisation.

Factor that triggered the inflationary projection is productivity gains in the agricultural and manufacturing sectors. He also said Gross Domestic Product is expected to pick up in the first half of the current year, owing largely to the continued efforts at driving indigenous production in high-impact real sector activities.

Meanwhile, CBN will maintain its stable exchange rate over the next year despite expected pressures from the volatility in the crude oil markets.

“Gross stability is projected in the foreign exchange market, given increased oil production and contained import bill.”

Also, the country’s Balance of Payments would remain positive in the short-term, while Nigeria’s current account balance could improve further if oil prices continued to recover.

“This will be supported by improved non-oil performance as diversification efforts begin to yield results to reduce undue imports.”

Emefiele warns recession still hovering on Nigeria

According to Emefiele, the factors that led to the economic crisis are still very much visible. On how to overcome the possibility of another recession: Emefiele suggested that there’s a need to;

  • Increase the country’s policy buffers, including fiscal measure, to increase its external reserve.
  • Also, diversifying the revenue structure of the Federal Government is of the utmost importance in order to reduce dependence on direct proceeds from the sale of crude oil.
  • Cheap financing would be provided to boost local production of priority goods in critical sectors of the economy in order to reduce reliance on foreign imports.
Tags: Central Bank of NigeriaGodwin EmefieleInflation rates in NigeriaMonetary PolicyRecession in Nigeria

Comments 5

  1. Gbenga Oludipe says:
    March 22, 2019 at 10:42 am

    I think the news topic is misleading and should be corrected.

    CBN projects 12% rise in inflation rate is different from

    Mr Godwin Emefiele, has announced that the country’s inflation rate will rise to 12 percent

    Reply
    • Emmanuel Abara Benson says:
      March 22, 2019 at 10:55 am

      It is not misleading, Mr Ogudipe.

      The CBN made the projection, and Mr Emefiele is the CBN Governor. He speaks on behalf of the CBN.

      Reply
  2. Gbenga Oludipe says:
    March 22, 2019 at 11:41 am

    What I meant is that a 12% rise is not the same as ‘rise to 12%’. The former indicates an additional 12% while the latter says grow to 12%. I still believe it is misleading. Please review

    Reply
    • Emmanuel Abara Benson says:
      March 22, 2019 at 12:03 pm

      Okay, Sir. I now understand what you mean. Thanks a lot for the observation. The correction will be made right away.

      Reply
    • Brian says:
      March 23, 2019 at 2:35 pm

      Excellent observation Mr. Gbenga.

      Well done, Emmanuel.

      Reply

Leave a Reply Cancel reply

Your email address will not be published. Required fields are marked *

hfm
UBA
Mega Millions
Mega Millions
fidelity banner
HFM







NM newsletters

Business News | Stock Market | Money Market | Cryptos | Financial Literacy | SME |

Recent News

  • SEC collaborating with SON to develop standards for commodities-Yuguda
  • Quicktake: Africa needs to take advantage of its carbon markets – AFC President  
  • Analysis: Developing countries need well designed electricity markets for EV services – World Bank

Follow us on social media:

Recent News

SEC collaborating with SON to develop standards for commodities-Yuguda

SEC collaborating with SON to develop standards for commodities-Yuguda

June 6, 2023
Quicktake: Africa needs to take advantage of its carbon markets – AFC President  

Quicktake: Africa needs to take advantage of its carbon markets – AFC President  

June 6, 2023
  • Download Nairametrics iOS App
  • Download Nairametrics Android App
  • Home
  • Exclusives
  • Markets
  • Industries
  • Economy
  • Business News
  • Financial Literacy
  • Opinions

© 2023 Nairametrics

No Result
View All Result
  • Home
  • Exclusives
    • Financial Analysis
    • Corporate Stories
    • Interviews
    • Investigations
    • Metrics
  • Markets
    • Currencies
    • Cryptos
    • Commodities
    • Equities
      • Dividends
      • Stock Market
    • Fixed Income
    • Market Views
    • Securities
  • Industries
    • Company News
    • Consumer Goods
    • Corporate Updates
    • Corporate deals
    • Corporate Press Releases
    • Energy
    • Entertainment
    • Financial Services
    • Hospitality & Travel
    • Manufacturing
    • Real Estate and Construction
    • Tech News
  • Economy
    • Nairalytics
    • Macro-Economic News
    • Research Analysis
    • Budget
    • Public Debt
  • Business News
  • Financial Literacy
    • Career tips
    • Personal Finance
  • Lifestyle
    • Billionaire Watch
    • Profiles
  • Opinions
    • Blurb
    • Op-Eds
  • Login
  • Sign Up

© 2023 Nairametrics

Welcome Back!

Login to your account below

Forgotten Password? Sign Up

Create New Account!

Fill the forms below to register

All fields are required. Log In

Retrieve your password

Please enter your username or email address to reset your password.

Log In