- Olayemi Cardoso, the new CBN governor, has provided insights into how he will tackle Nigeria's rising inflation
- He listed various policies he will implement and promised they will be data-driven to achieve the intended goal
- Cardoso was confirmed as the new governor of the CBN by the Senate, along with four other deputy governors
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Newly confirmed Central Bank of Nigeria governor Olayemi Cardoso has outlined his plans to tackle the persistent issue of rising inflation in Nigeria.
One of such plans, according to him, is the use of data to implement evidence-based monetary policies.
Nigeria’s surging inflation rate is one of the biggest challenges facing Cardoso, who is now fully in control of the CBN.
Data from the National Bureau of Statistics revealed that Nigeria's annual inflation rate accelerated to an 18-year high of 25.8% in August 2023 from 24.08% reported in July.
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The August 2023 inflation figure is the eighth straight month that NBS has reported an increase in the country's inflation, indicating how stretched Nigerian households have become.
Cardoso ready to change Nigeria's inflation story
Speaking during his screening session at the Senate on Tuesday, September 26, 2023, which was monitored by Legit.ng, Cardoso explained that Nigeria's rising inflation rate has been as a result of money supply and deficit financing.
"On the issue of inflation and the price of goods, the jury is out, some people will say structure, some others will say it is money supply issue. Truth is, it is a combination of both.
"When you look at the dimension of inflation, we will be doing evidence-based monetary policy. We shall not be making decisions based on a whim.
"We will significantly rebound the infrastructural demand with respect to ensuring that our data gathering capacity is enhanced so we can make decisions based on proper data.
"Reliable studies have shown that in the past 10 to 15 years at least 50 per cent of inflation has been as a result of money supply and deficit financing.
“This is a big problem at least it certainly has been over a period of time and it’s something we have to face frontally."
CBN governor to tackle deficit financing
Cardoso added that avoiding deficit financing would tackle money supply issues, This Day reported.
"“Going forward from the Central Bank of Nigeria, we will do everything possible to ensure that we work closely with the fiscal side and ensure that the issue of deficit financing does not become a problem to us. We cannot afford to have the big challenges from fiscal deficit financing,"
He also promised that the CBN would ensure that the issue of deficit financing would not be a problem for the country.
Cardoso added that avoiding deficit financing would tackle money supply issues.
The new CBN governor also said during his screening that the team would review the situation and come up with the required position.
New CBN governor plans to help naira recover
Meanwhile, Legit.ng reported that Yemi Cardoso revealed his plans to address the naira free fall at foreign exchange markets.
Speaking before senators, he promised to implement short-term and medium plans to achieve a stable exchange rate for naira.
Cardoso has a lot of work ahead, from the naira value to a widening gap in the foreign exchange market and addressing dollar shortages