CBN Governor – Nigeria’s Inflation Rate Target is 9%

Godwin Emefiele, Governor of the Central Bank Of Nigeria has stated that the inflationary rate target of 9% set by the monetary policy authority is still of upmost importance and efforts must be made to continue the downward inflationary trend in the economy.

Emefiele during the Monetary Policy meeting which was held in Abuja on the 23rd of November 2021, retained all monetary policy variables. The asymmetric corridor was also held at +100/-700 bps, Monetary policy rate remained steady at 11.5% ,Liquidity ratio and Cash Reserve Ratio were held at 30% and 27.50% respectively.

He further noted that the MPR committee identified the downward trend on inflation figures in the economy, dropping from 16.63 per cent in September and 15.99 per cent in October. However, the committee issued a warning revealing that the tolerance level for inflation is six to nine percent

The Monetary Policy Committee also urged the fiscal and monetary systems to harmonize their policies to improve economic growth.

The CBN governor speaking on behalf on the MPR committee  appealed to Nigerian banks to increase lending to businesses to support growth. Emefiele said extended repayment of intervention facilities to reduce effects of the cash flow on businesses.

His words  “From around September, October 2020, Nigeria began the process of easing the lockdown and notwithstanding, the fact that we still saw that around February, March 2021 that the Delta variant raised its head.

“We still said that these businesses should also have forbearance. At this time, we believe that global economy has opened up, lockdown has been lifted and of course, we know the casualties and the economic damages that were caused as a result of the lockdown.”