The Central Bank of Nigeria (CBN) says the lifting of petrol from the Dangote refinery in the Ibeju-Lekki area of Lagos State will moderate transportation costs, thereby easing food prices in the country.
CBN Governor Olayemi Cardoso said this while presenting a communique from the apex bank’s 297th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, September 24, 2024.
Cardoso said the petrol lifting from the Dangote refinery will also moderate foreign exchange demand pressures.
The CBN boss said: “The committee expressed optimism that the lifting of refined petroleum products from Dangote refinery will moderate transportation costs and significantly support the easing of food price pressures in the short to medium term.
“This is also expected to moderate foreign exchange demand for importation of refined petroleum products, with a positive spillover on external reserve and improvement in the overall balance of payment position.”
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Cardoso added that that an assessment of the performance of Nigeria’s financial institutions indicated that they were stable.
He stated: “Members assessed the performance of key financial soundness indicators and noted with satisfaction that in spite of familiar headwinds, the banking industry remains safe, sound, and stable.
“The committee, however, emphasised the need to sustain supervisory oversight on the industry to strengthen its continued support to the economy.”
On food inflation, Cardoso said the upside risks remained flooding, hike in energy prices, scarcity of petrol, and most importantly, insecurity in farming communities.
He said considering the weight of food in the Consumer Price Index (CPI) basket, the MPC recognised the efforts of the federal government in addressing insecurity in farming communities.
The CBN Governor also stressed the need to remain steadfast, saying: “In addition, the MPC applauded the ongoing effort of the federal government to bridge the food supply deficit through the duty-free import window for food commodities.”
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