The removal of petroleum products from the Dangote refinery will ease pressure on foreign exchange demand, said Governor of the Central Bank of Nigeria Yemi Cardoso.
Cardoso, who made the announcement in Abuja on Tuesday while presenting the communiqué of the 297th meeting of the central bank’s Monetary Policy Committee, said it would also reduce transportation costs, thereby reducing food prices.
“The committee expressed optimism that the removal of refined petroleum products from the Dangote refinery will reduce transportation costs and significantly assist in easing food price pressures in the short to medium term.
This is also expected to reduce foreign exchange demand for the import of refined petroleum products, with a positive impact on external reserves and an improvement in the overall balance of payments,” he said.
Cardoso also said that the assessment of the performance of Nigerian financial institutions showed that they were stable.
“Members assessed the performance of key financial strength indicators and were pleased to note that despite the familiar headwinds, the banking sector remains safe, strong and stable.
“However, the Commission stresses the need to maintain industry oversight to enhance ongoing support to the economy,” he said.
France On food inflation, Cardoso said the upside risks remain floods, rising energy prices, fuel shortages and, in particular, insecurity among farming communities.
He said that, given the weight of food in the Consumer Price Index (CPI) basket, the MPC acknowledged the Federal Government’s efforts to address insecurity among farming communities.
He stressed the need to remain steadfast.
“Furthermore, the MPC welcomes the Federal Government’s continued efforts to bridge the food supply gap through the duty-free importation of food items,” he said.
