Despite the country experiencing eleven consecutive months of inflation escalation, reaching a peak in December 2023 with a surge to 28.92% from November’s 28.20%, according to the National Bureau of Statistics (NBS), Cardoso remains optimistic about an impending drop.

In his presentation, Cardoso projected a decline in inflation to 21% in the foreseeable future.

He outlined the CBN’s strategy, emphasizing the importance of the inflation-targeting policy, which aims to rein in inflation to 21.4%. The initiative, bolstered by anticipated improvements in agricultural productivity and global supply chain stability, aims to mitigate the adverse effects of inflation on the economy.

Giving an outlook for 2024, he said: “Inflationary pressures are expected to decline in 2024 due to the CBN’s inflationary targeting policy aiming to rein in inflation to 21.4 per cent, aided by improved agricultural productivity and easy global supply chain pressures.

“The Nigerian foreign exchange market is currently facing increased demand pressures causing a continuous decrease in the value of naira.”

Addressing the challenges confronting the Nigerian foreign exchange market, Cardoso stressed the imperative of increasing export earnings to strengthen the naira’s value. He noted the need for stability and confidence in consumer prices and the foreign exchange market, asserting that restoring equilibrium in these areas is vital for economic resilience.

Cardoso’s remarks come amidst parliamentary scrutiny of key government officials, including the Minister of Finance and Coordinating Minister of the Economy, Wale Edun; Minister of Budget and National Planning, Abubakar Bagudu and the Executive Chairman of the Federal Inland Revenue Service (FIRS) Zacch Adedeji, over economic concerns and the depreciation of the naira.

During the session, Cardoso reiterated the CBN’s commitment to implementing policy measures designed to positively influence inflation dynamics and foster economic stability amid market volatility.