The governor of the Central Bank of Nigeria (CBN) Yemi Cardoso yesterday provided an optimistic outlook for the Nigeria economy on the back of deliberate and continued reform measures of the Bola Ahmed Tinubu administration. He spoke at the launch of the Nigerian Economic Group (NESG) Macroeconomic Outlook 2024. One of the key messages of his presentation (See it here) is that the Naira is undervalued. The immediate and long-term prospects of the economy is not reflected in the volatility of the Naira that we have seen in the last eight months and expects “a genuine price discovery” in the medium term. He was also looking to improvements in Nigeria’s macroeconomic environment through improvements in the oil production, oil receipts from Nigeria’s national oil corporation, NNPC and his continued work with his fiscal counterparts in government. He also alluded to the positive response from ratings agencies in response to the government’s reforms on fuel subsidy, exchange rates, and taxation. The governor says he expects inflation to moderate to 21% at the end of this year. Inflation is currently about 30%.
