Central Bank of Nigeria Governor Yemi Cardoso has stated that the commencement of petroleum product lifting from the Dangote Refinery will help alleviate pressures on foreign exchange demand.
Speaking in Abuja on Tuesday, Cardoso shared insights from the apex bank’s 297th Monetary Policy Committee meeting, emphasizing that this development could also reduce transportation costs, which in turn may lead to lower food prices.
“The committee is optimistic that sourcing refined petroleum from the Dangote refinery will help bring down transportation expenses and significantly ease food price pressures in the near to medium term,” Cardoso remarked.
He added that this initiative is anticipated to lessen the demand for foreign currency used in importing refined petroleum, positively impacting external reserves and the overall balance of payments.
Cardoso also provided an update on the stability of Nigeria’s financial institutions, indicating that they remain resilient despite ongoing challenges.
“Members reviewed key financial soundness indicators and are pleased to report that, despite familiar headwinds, the banking sector continues to be safe, sound, and stable,” he noted.
He stressed the importance of maintaining supervisory oversight to ensure the banking industry’s ongoing support for the economy.
Addressing food inflation, Cardoso pointed out potential risks such as flooding, rising energy prices, petrol shortages, and insecurity in agricultural areas.
He acknowledged the Federal Government’s efforts to tackle insecurity in farming communities, highlighting the importance of vigilance in this regard.
