Nigeria’s economy is experiencing a significant boost with foreign reserves reaching $39.07 billion in September 2024, reflecting a 17.4% increase from the previous year. The Central Bank of Nigeria Governor, Olayemi Cardoso, announced this positive development after a Monetary Policy Committee meeting.
The country’s real GDP growth is also showing an upward trend, driven by both oil and non-oil sectors, indicating a broad-based economic recovery. Despite challenges, the banking sector remains resilient.
In response to the evolving economic landscape, the CBN has raised the Monetary Policy Rate by 50 basis points to 27.25% and adjusted cash reserve ratios for deposit and merchant banks. The committee highlighted the stability in exchange rates but acknowledged the need for further actions to achieve price stability.
Food inflation remains a concern, with various risk factors identified. However, the committee praised the government’s initiatives to address these challenges, including measures to boost food supply and the potential impact of local refining on reducing transportation costs and foreign exchange demand.