•Projects less revenue from oil exports in the fiscal year
•Declares N18.804billion as total trade balance in Q3 of 2023
By Musa Baba Adamu
The Central Bank of Nigeria( CBN) , declared in Abuja on Thursday that the soaring Inflation and Exchange Rates will drastically decline in 2024 .
It also projected less revenue from oil exports in the fiscal year , just as it declared that total trade from Nigerian Foreign Exchange Market ( NFEM) , stood at N18.804billion in the third quarter ( Q3) of 2023.
The declarations were made by the Governor of the Apex Bank , Olayemi Cardoso in his presentation the National Assembly joint committee on Banking , Insurance and other Financial Institutions .
He explained to members of the joint committee from both chambers of the National Assembly , that outlook for domestic economy in Nigeria for 2024 is very positive as both the Inflation and Exchange rates , would withstand fluctuating pressures on them and get stabilized .
“ The outlook for the domestic economy remains positive and expected to maintain the positive trajectory for 2024 .
“ Inflation pressures may persist in the short – term but is expected to decline in 2024. Exchange rate pressures are also expected to reduce significantly with the smooth functioning of foreign exchange market”, he said .
He specifically informed the committee members that the unification of the exchange rate windows in June 2023, has ushered in a new approach to the management of the exchange rate , aimed at reducing arbitrage , rent seeking behaviour and speculation in the market.
“ The policy aims at creating a market where the demand and supply of foreign exchange determines the exchange rate .
“ The premium has narrowed and our focus on increasing the autonomous FX supply , would lead to more stability and further narrowing of the premium .
“ Total Trade in the third quarter of 2023 , stood at N18.804.68billion . Exports were valued at N10.346.60billion while total imports stood at N8.457.68billion . This represents positive trade balance , which would lead to increase of the external reserves “, he said .
He however stated that due to domestic prevailing factors , less revenues , would be earned from oil exports in 2024 .
He said : “ We expect less revenue from oil exports due to the production limit of 1.78mbpd in 2024 . OPEC approved quota for Nigeria is 1.8mbpd , which is higher than the 2024 budget assumption .
“ However , the country ‘s production has been below these thresholds . The budget benchmark for 2023 was 1.69mbpd , but the highest level of production during the year , was about 1.35mbpd in Q3 of 2023.
“ The reasons for the underperformance of the oil production target , include , crude oil theft and pipeline vandalization , production shut – ins and divestments by major oil companies “.
Earlier before the CBN Governor’s presentation , the Chairman of the joint committee , Senator Tokunbo Abiru ( APC Lagos East) , said the interactive session was organized for statutory briefing by CBN in line with extant laws.
The co – Chairman of the committee , Hon Bahir Bello El-Rufai , in his remarks , commended the CBN governor and the entire management team on measures being put in place to stabilise the economy generally .
