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By Kabir Abdulsalam
The Central Bank of Nigeria (CBN) has commended the Federal Government’s efforts to improve domestic refining capacity, a move that is expected to reduce the country’s reliance on imported petroleum products and conserve foreign exchange.
Olayemi Cardoso, the Governor of the CBN made the commendation at the after the end of the 296th MPC meeting on Tuesday in Abuja.
Cardoso said the government’s policy to improve domestic refining capacity will also help to reduce the pressure on the naira and stabilize the foreign exchange market.
He noted that the government’s efforts to improve domestic refining capacity are already yielding results, with the Dangote refinery and other private sector-led initiatives expected to come on stream soon.
The Committee expressed optimism that the improved refining capacity will help to reduce the country’s fuel import bill, conserve foreign exchange, and stabilize the economy.
The Meridian Spy reports that the CBN’s commendation comes as the Nigeria’s foreign exchange reserves have been under pressure due to the high demand for dollars to import petroleum products.
Cardoso also noted that the government’s efforts to improve domestic refining capacity are in line with the CBN’s commitment to promoting economic growth and development.
His words: “In addition, Members noted the efforts of the Federal Government and private sector towards improving domestic refining capacity as this is expected to reduce foreign exchange currently being expended on the importation of refined petroleum products.’
While commenting to the key developments in the domestic and global economies, Cardoso said: “Nigeria’s domestic headline inflation rose to 34.19% in June 2024, up from 33.95% in May 2024, driven by increases in food and core inflation. Month-on-month headline inflation also rose to 2.31% in June 2024, from 2.14% in the preceding month.”
He noted that the country’s real GDP grew by 2.98% in the first quarter of 2024, driven by both the oil and non-oil sectors. H
He said: “However, growth is expected to slow, with staff forecasts predicting a 3.38% growth rate in 2024, slightly above the IMF’s projection of 3.1%.
“Globally, the economy is forecast to grow at 3.2% and 3.3% in 2024 and 2025, respectively, despite headwinds from tight financial conditions and geopolitical tensions. Global inflation is expected to decelerate marginally in 2024 but remain above central banks’ long-run objectives, keeping financial conditions broadly tight through 2024 and into 2025.”
