The Central Bank of Nigeria (CBN) has expressed optimism that the country’s inflation rate may drop to a single-digit by 2022.
Hassan Mahmud, director of monetary policy department, CBN, stated this on Friday in Lagos at the virtual mid-year economic review and outlook 2021, organised by the Chartered Institute of Bankers of Nigeria’s Centre for Financial Studies, in collaboration with B. Adedipe Associates.
In May 2021, the country’s inflation rate dropped slightly from 17.93 percent to 17.75 percent in June.
Speaking at the event, Mahmud stated that there were positive sides to Nigeria’s economic growth, despite uncertainties in the domestic and global economy.
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He expressed that if policy challenges with exchange rates, insecurity, among others, were addressed effectively, the country would start seeing some positive projections in 2021 and the beginning of 2022.
“Also, if the CBN forecasts for GDP growth are sustained, and there is improved vaccination, and the health hazards and lockdowns are not resurfacing, we will see GDP getting close to three per cent by the end of 2021,” Mahmud said.
“We will also see the inflation number coming down less than 13 percent by the end of the year and further down to the NBS projection of single-digit by 2022 or the middle of 2022.
“We will start seeing a downward trend in inflation numbers particularly, headline inflation.”
Also addressing the hike in food prices, Mahmud noted that food inflation would also go down substantially if the supply side of it was addressed and security issues abated.