CBN Inflation targeting of 21% for 2024 not feasible – Agusto & Co

A financial expert has said that inflation targeting of 21 per cent set by the Central Bank of Nigeria(CBN) for 2024 financial year is not Visible, as a lot of factors is affecting inflation in the country.

The Head, Financial Institutions Ratings at Agusto & Co. Mr Ayokunle Olubunmi who disclosed this at a forum in Lagos  said the CBN governor’s projection  can only be realized if all the countervailing variables have been addressed. 

To this effect, he said   that  an average inflation rate for 2024  in best situation would be at 26.1 percent while the worst case scenario it would be at 28.2 percent. 

He also said that the CBN needs to over supply dollar in the foreign exchange market untill the exchange rate stabilize, adding that it will be difficult for foreign investors to invest in an economy with unstable exchange rate.

The CBN governor had earlier said that the CBN’s adoption of an inflation-targeting framework involves enhanced communication and collaboration with fiscal authorities, aiming for price stability, potentially leading to lowered policy rates, increased investment, and job creation.

Looking ahead, Cardoso announced that the upcoming MPC meeting in late February will review the situation and make further decisions on crucial economic issues.

UNI Agric Markurdi
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