The Central Bank of Nigeria (CBN) said the country’s economy is exposed to the fluctuation of prices and rates in the petroleum market and the foreign exchange market.
In a communique released on Tuesday, which conveyed the outcome of the Monetary Policy Committee (MPC) meeting, the CBN said it has a moderated outlook for the global and domestic economies.
CBN disclosed that high prices of Premium Motor Spirit (PMS) and other energy products; as well as pressure in the foreign exchange market will affect the growth of Nigeria’s economy.
Recall that this year, the price of fuel has increased from N189 per litre to N580 this year, with oil marketers projecting the pump prices could rise above N700 per litre.
Also, the exchange rate between the naira to United States Dollar (USD) has increased from N461.50/$1 to N791.42/$1 as of Tuesday.
READ ALSO:CBN raises interest rate to 18.75%
These increases are expected to have a ripple effect on the domestic economy, which the CBN projected will grow by 2.66 per cent in 2023.
In the communique addressing the global and domestic economy, CBN said: “The overall outlook for the recovery of both the global and domestic economies moderated, however uncertainties remain. At the global level, legacy headwinds such as the war in Ukraine and slow recovery of the Chinese economy as well as ongoing bricsification are key downside risks to output growth.
“In the domestic economy, factors precipitating the uncertainties remain the continued insecurity, particularly in farming communities; high prices of PMS and other energy products; as well as pressure in the foreign exchange market.
“Forecasts for key macroeconomic indicators for the Nigerian economy indicate that the economy will continue to recover moderately through 2023 to grow by 2.66 per cent (CBN), 4.20 per cent (FGN) and 3.20 per cent (IMF).”
Join the conversation
Support Ripples Nigeria, hold up solutions journalism
Balanced, fearless journalism driven by data comes at huge financial costs.
As a media platform, we hold leadership accountable and will not trade the right to press freedom and free speech for a piece of cake.
If you like what we do, and are ready to uphold solutions journalism, kindly donate to the Ripples Nigeria cause.
Your support would help to ensure that citizens and institutions continue to have free access to credible and reliable information for societal development.
ICYMI…SPECIAL REPORT: NNPCL hides behind PIA to frustrate disclosure, accountability
Nigeria’s major oil company, Nigerian National Petroleum Corporation Limited (NNPCL), in what appears to be a common practice of disregard...
INVESTIGATION: Multi-million naira Ekiti resort center remains uncompleted a decade after
The multimillion-naira project, expected to comprise recreational buildings, now consists of cassava farmland, a bush used for excretion, and a...
SPECIAL REPORT: Torturous experiences of students with disabilities in Oyo tertiary institutions
For students with disabilities in Oyo state-owned tertiary institutions, learning is a torturous and distressing experience, considering the building structures...
INVESTIGATION: Uncompleted Old Enugu-Onitsha Road brings untold hardship, tears to commuters, residents of Enugu communities
Ugwu Obinna’s younger sister was killed after a truck driver transporting cows rammed into her shop located at the Okpatu...
INVESTIGATION: Students sit on floors, under leaking roofs as multi-million naira project is nowhere to be found in Zamfara
Suleman Tukur, 15, an SS 2 student of Government Day Secondary School (GDSS) Bakura in Bakura local government area of...