Nigeria’s Inflation Rate Not Bad Compared to Other African Countries, Says CBN Acting Governor

Ilesanmi AdekanbiAugust 9, 2023

2 minutes read

Folashodun Shonubi, the acting governor of the Central Bank of Nigeria (CBN), has said that Nigeria’s inflation rate is better than that of many other African countries, despite the global surge in prices.

Shonubi made this remark on Tuesday at the 2023 Zenith Bank International Trade Seminar in Lagos, where he discussed the challenges and opportunities for Nigeria’s non-oil export industry.

Shonubi, who was represented by Kingsley Obiorah, the deputy governor for economic policy, said that Nigeria’s inflation rate was 22.8 per cent as of August 2023, which was lower than the rates of Ghana (42.5 per cent), Ethiopia (31 per cent), and Egypt (36 per cent).

He attributed the rise in inflation to several factors, such as the COVID-19 pandemic, supply chain disruptions, climate change, and geopolitical tensions.

Shonubi also expressed concern over the low contribution of non-oil exports to Nigeria’s Gross Domestic Product (GDP), which stood at 4.6 per cent in 2022.

He said that the CBN was committed to supporting the growth and diversification of the non-oil export sector, which had the potential to create jobs, increase foreign exchange earnings, and reduce dependence on oil revenues.

Shonubi said that the CBN had introduced various initiatives and policies to boost non-oil exports, such as the Export Expansion Facility Programme (EEFP), the Export Development Fund (EDF), the Non-Oil Export Stimulation Facility (NESF), and the Anchor Borrowers’ Programme (ABP). He also urged stakeholders in the non-oil export industry to take advantage of these interventions and leverage on the opportunities offered by the African Continental Free Trade Area (AfCFTA) agreement.

Shonubi said that the theme of the seminar, “Nigerian Non-Oil Export Industry. The Present, The Future”, was apt and timely, as it provided a platform for dialogue and collaboration among key players in the non-oil export sector.

He commended Zenith Bank for organizing the seminar and for its support to the non-oil export industry. He also thanked the participants for their attendance and contributions.

However, Shonubi expressed concern over the low growth rate in non-oil exports to Gross Domestic Product (GDP) ratio. He said that this was a major challenge to Nigeria’s economic growth.

Shonubi urged the government to take steps to boost non-oil exports and to reduce the country’s dependence on oil. He also called for increased investment in agriculture and manufacturing.