Progress in Nigeria’s Economy in Post-Recession Excites Emefiele

By Adedapo Adesanya

The Governor of the Central Bank of Nigeria (CBN), Mr Godwin Emefiele, says the Nigerian economy has maintained a positive growth trajectory for nine consecutive quarters since exiting the COVID-19-induced recession in 2020.

Mr Emefiele said this on Tuesday in Abuja when he read the communique issued at the end of the 290th meeting of the Monetary Policy Committee (MPC) meeting of the apex bank.

According to the nation’s chief banker, the improved performance of the economy has been driven largely by sustained growth in the services and agricultural sectors as well as continued intervention in sectors by the central bank.

“Staff projections showed that output growth recovery is expected to continue into 2023 and 2024.

“The Committee, however, observed with concern the marginal increase in headline inflation in February 2023, to 21.91 per cent, from 21.82 per cent in January 2023, a 0.09 percentage point increase.

“This increase was attributed largely to a minimal rise in the food component to 24.35 per cent in February 2023, from 24.32 per cent in January 2023.

“The core component moderated to 18.84 per cent in February 2023 from 19.16 per cent in January 2023,” he said.

Mr Emefiele also said that the shocks to the food component of inflation were driven by the high cost of transportation of food items.

He said that lingering security challenges in major food-producing areas and legacy infrastructural problems, which continue to hamper food supply logistics, were also responsible.

“Broad money supply (M3) grew by 13.14 per cent in February 2023, below the 2023 provisional annual benchmark of 17.18 per cent.

“This was driven largely by the growth in Net Foreign Assets (NFA), which was attributed to the increase in foreign asset holdings of the CBN and decrease in foreign claims on Other Depository Corporations (ODCs).

“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 per cents in February 2023, from 10.14 and 10.35 per cent in January 2023,” he said.