Godwin Emefiele predicts more inflation ahead of 2019 election

Godwin Emefiele predicts more inflation ahead of 2019 election

- The CBN governor, Godwin Emefiele, says despite the gloomy state of the Nigerian economy, the short-term outlook remains good

- Emefiele notes that CBN is determined to maintain its stable exchange policy stance over the next few months

The Central Bank of Nigeria (CBN) has predicted that inflation rate in the country is expected to rise for the rest of 2018 till mid-2019 due to the forthcoming elections.

Godwin Emefiele, the governor of the CBN, made the disclosure when giving a speech at a bankers’ dinner in Lagos, The Sun reports.

He, however, stated that despite this gloomy picture, the short-term outlook of the Nigerian economy remains good.

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"Inflation expectations are rising on the backdrop of anticipated politically-related liquidity injections. For the rest of 2018 and towards mid-2019, Nigeria’s rate of inflation is projected to rise slightly to about 11.4 percent and then moderate thereafter," Emefiele said.

"In light of the current developments in both the global and domestic economies, and based on extensive simulations, the Central Bank of Nigeria (CBN) is of the view that the short-term outlook of the Nigerian economy remains good."

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The CBN governor said the apex bank has so far managed to maintain exchange rate stability, noting that the bank is determined to maintain its stable exchange policy stance over the next few months given the relatively high level of reserves.

Meanwhile, the federal government has said that Nigeria has cut its importation of food into the country.

The governor of Central Bank of Nigeria, Godwin Emefiele, said the country's monthly food import bill fell from $665.4 million in January 2015, to $160.4 million as of October 2018.

Emefiele said the reductions in food import were recorded on basic food items including rice, fish, milk, sugar and wheat. He said the policy on food items and its importation would be maintained.

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Source: Legit

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