Since emerging from the recession in 2020, the Nigerian economy has grown for nine straight quarters, according to a statement from the Central Bank of Nigeria (CBN).
The government’s initiatives to diversify the economy and lessen reliance on oil exports were credited with the rise. The CBN also attributed the expansion to the nation’s improving security and stability.
This was said by the CBN Governor, Mr. Godwin Emefiele, on Tuesday in Abuja while reading the communique that was released following the conclusion of the 290th meeting of the apex bank’s Monetary Policy Committee (MPC).
Emefiele claims that the agriculture and service sectors’ consistent expansion has played a major role in the economy’s improved performance.
Additionally, he pointed to the economic recovery’s resurgence in economic activity as well as the CBN’s ongoing interventions in industries that promote growth as causes of the growth.
The Committee was concerned about the 0.09 percentage point increase in headline inflation from January 2023’s 21.82 percent to 21.91 percent in February 2023.
A small increase in the food component from 24.32 percent in January 2023 to 24.35 percent in February 2023 was mostly responsible for this gain.
He noted that from 19.16 percent in January 2023 to 18.84 percent in February 2023, “the core component” had moderated.
According to Emefiele, the high cost of food item transportation was what caused the shocks to the inflation’s food component.
Continuing security issues in significant food-producing regions and historic infrastructure issues that continue to impair the logistics of the food supply, according to him, were partly to blame.
Money market rates reflected the tight liquidity conditions in the banking system.
Consequently, the monthly weighted average Open Buyback (OBB)
and Inter-bank Call rates increased to 12.74 and 12.54 percent in February 2023, from 10.14 and 10.35 percent in January 2023, he said.