Stable FX rate, higher demand will spur domestic manufacturing in 2024 — CBN

The Central Bank of Nigeria, CBN, has expressed optimism of improved macroeconomic conditions in 2024, adding that stable exchange rate, FX and higher demand for goods and services will spur domestic manufacturing activities.

Deputy Governor Economic Policy, Central Bank of Nigeria, CBN, Mr. Muhammad Abdullahi stated this in a keynote address at the 10th National Economic Outlook: Implications for Businesses in 2024 organized by the Chartered Institute of Bankers of Nigeria, CIBN, in collaboration with B. Adedipe Associates Limited in Lagos.

Meanwhile the CIBN has harped on the need for emphasises on economic diversification and value addition as a criterial for driving economic growth.

Represented by the Director Monetary Policy, CBN, Dr. Mohammed Tumala, Abdullahi said: “Due to the expected increase in crude oil production, arising from improved surveillance and infrastructure, better maintenance of plants, and increased investments in the oil sector, growth would be enhanced

in the industry sector.

“ Furthermore, gradual revival of domestic manufacturing due to a more stable exchange rate, higher anticipated demand from a growing middle class, improved macroeconomic

conditions, as well as access to cheaper foreign inputs are expected to spur domestic manufacturing and industrial development.”

Abdullahi further noted that though inflation rate is expected to decline this year, and such would bring about positive outcomes, businesses should be vigilant as external economic factors such as exchange rate, crude oil price and global supply chain can influence the trajectory of inflation.

He added: “Therefore, as we traverse the   complexities of both the domestic and global economy, the Bank’s strategies will play a pivotal role in maintaining stability and fostering an environment that encourages”

On his part, the President/Chairman of Council, CIBN, Dr. Ken Opara said that   2024, presents the country’s economic landscape with   both challenges and opportunities shaped by specific, quantifiable realities.

He added that among other things promoting exports and enhancing value addition in key sectors like agriculture and manufacturing, would generate significant gains for the economy.

“Looking ahead to 2024, our economic landscape presents both challenges and opportunities shaped by specific, quantifiable realities. “Foreign exchange fluctuations have depreciated the naira by 49 percent (World Currency Monitor, 2024) over the past year impacting import costs for businesses.