The Central Bank of Nigeria (CBN) has underscored the relative stability of Nigeria’s inflation rate in comparison to its African peers, even amidst prevailing global challenges.
According to the acting CBN Governor Folashodun Shonubi, Nigeria’s inflation rate currently stands at 22.8 percent, comparatively favorable against inflation levels in neighboring countries such as Ghana, Ethiopia, and Egypt.
Shonubi, who spoke through Deputy Governor, Economic Policy at the CBN, Kingsley Obiorah, underscored the economic implications of such variations, revealing how inflation dynamics impact overall growth prospects.
“In our dear country, we are at 22.8 percent. When you hear these figures, it tells you that we’re not doing as badly, but all of this has also affected economic growth itself,” the acting governor stated.
READ ALSO: Nigeria’s Presidential Committee urges revenue centralization for MDAs, focus on tax efficiency
He further noted that the ongoing Russia-Ukraine conflict and a shift from goods to services have contributed significantly to the global inflation trajectory. The strained relationship between these two commodity-exporting nations has led to supply chain disruptions, particularly in the food sector, causing a ripple effect on global food prices.
He also emphasized the evolving demand dynamics, where a transition from goods to services has led to increased costs, impacting the overall inflation landscape. Moreover, he drew attention to disruptions in China, notably their transition to renewable energy sources and internal economic adjustments, which have had cascading effects on global supply chains.
The discussion expanded to Nigeria’s non-oil export industry, with the acting CBN governor highlighting the imperative of growth in this vital sector. He noted that the non-oil exports to Gross Domestic Product (GDP) ratio in Nigeria has seen only a modest rise from 0.8 percent to 1.2 percent over a decade, indicating the need for accelerated progress.
Drawing parallels with other nations, Shonubi underscored the potential of Nigeria’s vast resources. He pointed to countries like the Netherlands and Ireland, which despite smaller land sizes, have managed to significantly boost their non-oil exports as a percentage of GDP.
(Edited by Oludare Mayowa; firstname.lastname@example.org; Newsroom: +234 8033 964 138)