The trio in charge of the three key ministries and agencies of the government on the economy appeared before a House of Representatives select committee yesterday. The Finance Minister Olawale Edun, the Budget Minister Atiku Bagudu, and the Central Bank of Nigeria (CBN) Governor Yemi Cardoso delivered statements that provides an optimistic and early end to Nigieria’s current economic challenges. They reiterated the unsustainable fiscal situation the government met in May 2023 and argued that the ongoing reforms will deliver a stable price and exchange rate outcome. In the meeting, Yemi Cardoso traced spike in the demand for US dollars on the rise in demand for foreign education and health care. He stressed that the Bank has shifted to inflation targeting approaching and expects that to deliver 21% inflation rate at the end of this year. As explained here before, the Governor also stressed that the current volatility is not based on real demand for exchange purposes, but on arbitrage and the expectation that the US dollar will continue to appreciate against the Naira. Unknown to many speculators, the practice will lead to investment and production collapse in the economy, making the capacity for the economy to recover even worse.
