Investor Presentaiton
The Country and its
institutions
Business Organisation Labour and Social
and Regulation
Security Regulations
The Nigerian Financial Tax System
Services Industry
Foreign Exchange
Transactions
Investment in Nigeria
Accounting and
Auditing Requirements
Importation of Goods
Exportation of Goods
COVID-19 Economic
and Fiscal Measures
å
Consumer Price Index (CPI) growth rate
CPI (%) Jan 2020 to Jan 2021
20
16.47
15.75
14.89
14.23
15
13.71
13.22
12.13 12.2
12.26 12.34
12.4 12.56
12.82
10
LO
5
0
Jan
Feb Mar Apr May Jun
Jul Aug Sep Oct Nov Dec Jan
Source: NBS
The CBN operates a tight monetary policy to control inflation in Nigeria. The
"Monetary Policy Rate (MPR)" was introduced in December 2006 to replace the
Minimum Rediscount Rate. The MPR was set at 10%, using the prevailing rate of
inflation and the expected inflation rate outcome of 9% at that time as a guide, to
ensure that interest rates remained positive in real terms. This translated into an
upper limit of 13%, which was the Repo rate, and a lower limit of 7%, which was
the rate at which the CBN took deposits from banks at the time. As at 23 March
2021, the MPR was 11.5%.
Since the introduction of the MPR, a number of changes have been made to
the monetary policy process, and the MPR has been varied several times by
the Monetary Policy Committee of the CBN in response to developments in the
economy - especially as indicated by inflation rate and exchange rate trends.
Despite the current economic realities, Nigeria's economy is still estimated to be
the largest in Africa with a nominal GDP of over $400 billion in 2020.18
18 https://en.wikipedia.org/wiki/List_of_African_countries_by_GDP (nominal)
KPMG
Investment in Nigeria Guide - 8th Edition
22View entire presentation