The Central Bank of Nigeria has said that Nigeria’s inflation rate may drop to single digit in 2022.
The apex bank’s Director of Monetary Policy Department, Hassan Mahmud, said this on Friday at the virtual mid-year economic review and outlook 2021.
The programme was organised by the Chartered Institute of Bankers of Nigeria’s Centre for Financial Studies.
Mr Mahmud said that with the full implementation of the CBN’s recent policies designed to boost different sectors of the economy, the nation’s inflation rate would be kept at bay.
In June, the National Bureau of Statistics said Nigeria’s inflation rate fell to 17.75 per cent from 17.93 per cent recorded in May.
The CBN official said that since the Nigerian economy recovered from recession in the last quarter of 2020, it had maintained a path of recovery despite challenges triggered by the COVID-19 pandemic and insecurity.
Punch newspaper reported that the CBN official explained that despite the challenges of insecurity, exchange rate market pressure, declining capital inflows, high debt service payments and rising fiscal deficits, the nation is projected to record speedy domestic recovery.
“If the CBN forecasts for GDP growth are sustained and there is improved vaccination and the health hazards and lockdowns are not resurfacing, we will see GDP getting close to three per cent by the end of 2021,” he said.
“We will also see the inflation number coming down less than 13 per cent by the end of the year and further down to the NBS projection of single digit by 2022 or the middle of 2022.
“We will start seeing a downward trend in inflation numbers, particularly, headline inflation.”
Mr Mahmud said that with the right policy mix, including an effective supply system, the country would experience positive growth in 2021 and the beginning of 2022, and there will be a drop in food inflation.
In his intervention, the Chief Consultant of BAA Consult, Biodun Adedipe, noted that the growth of the oil sector would impact positively on the economy.
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