Dr Olayemi Cardoso, Governor, Central Bank of Nigeria (CBN) says fuel costs are expected to reduce in 2024, effectively impacting several segments of the Nigerian economy.
Cardoso made this projection on Wednesday at the unveiling of the 2024 macroeconomic outlook of the Economic Summit Group (NESG) in Lagos. “The expected stabilisation reduction in fuel costs is poised to have far-reaching implications across various sectors, contributing significantly to overall economic efficiency and resilience,” he said.
The CBN Governor also said the country is expected to achieve stability in the foreign exchange (FX) market this year, attributable to the reduction in petroleum products imports.
The CBN Governor spoke at the back of the commencement of production at the Dangote Petroleum Refinery, as well as the completion of the mechanical phase of the Port Harcourt Refinery. He noted that the CBN will partner with the Ministry of Finance and the Nigerian National Petroleum Company Limited (NNPCL) to ensure that “all our inflows are returned to the Central Bank.”
“These coordinated efforts will greatly enhance the Bank’s FX inflows and contribute to the appreciation of reserves,” Cardoso said.
“The expected stability in the foreign exchange market for 2024 can be attributed to the reduction in petroleum products imports and the recent implementation of a market determined foreign exchange policy by the CBN.
“The reform is designed to streamline and unify multiple exchange rates, fostering transparency and reducing opportunities for arbitrage.”
According to the CBN Governor, the resulting consistent and stable exchange rate will not only boost investor confidence but also attract foreign investments, elevating Nigeria’s appeal to global investors.
“We are implementing a comprehensive strategy to improve liquidity in our FX market in the short, medium and long term. Our focus is on addressing fundamental issues that have hindered effective operation of our market over the years,” Cardoso said.