Yemi Cardoso, the Governor of the Central Bank of Nigeria (CBN), stated that the lifting of petroleum products from the Dangote Refinery will help alleviate foreign exchange demand pressures. Speaking on Tuesday in Abuja while presenting a communiqué from the apex bank’s 297th Monetary Policy Committee meeting, Cardoso added that this measure would also reduce transportation costs, thereby easing food prices.
“The committee expressed optimism that the lifting of refined petroleum products from Dangote refinery will moderate transportation costs and significantly support the easing of food price pressures in the short to medium term.
This is also expected to moderate foreign exchange demand for importation of refined petroleum products, with a positive spill over on external reserve and improvement in the overall balance of payment position,” he said.
Cardoso also said that an assessment of the performance of Nigeria’s financial institutions indicated that they were stable.
“This is also expected to reduce foreign exchange demand for importing refined petroleum products, positively impacting external reserves and improving the overall balance of payments position,” he stated.
Cardoso also noted that an assessment of Nigeria’s financial institutions showed they were stable.
“Members assessed the performance of key financial soundness indicators and noted with satisfaction that inspite of familiar headwinds, the banking industry remains safe, sound, and stable.
“The Committee, however, emphasised the need to sustain supervisory oversight on the industry to strengthen its continued support to the economy,” he said.
Cardoso regarding food inflation, noted that the primary risks included flooding, rising energy prices, petrol scarcity, and, most importantly, insecurity in farming communities.
Given the significant weight of food in the Consumer Price Index (CPI) basket, He highlighted that the MPC identified the Federal Government’s efforts to address insecurity in farming communities.
He stressed the need to remain steadfast. ”In addition, the MPC applauded the ongoing effort of the Federal Government to bridge the food supply deficit through the duty-free import window for food commodities,” he mentioned.
