NigeriaPublic sector2024 – ongoingCentral Bank of Nigeria
AI inflation forecasting with social-media sentiment
Nigeria's central bank governor reported better inflation forecasts using social-media sentiment
Problem
The Central Bank of Nigeria needed inflation forecasts to support monetary-policy decisions and assess their effects.
Approach
Governor Olayemi Cardoso said the bank used AI and sentiment analysis from Twitter and Facebook in its forecasting models. He reported improved forecast accuracy at an Association of African Central Banks meeting in September 2024.
Results
No published figures
Takeaway
Social-media sentiment supplied an additional forecasting input. The governor did not quantify the improvement in accuracy.
Categories
- Size
- Large enterprise
- Industry
- Public sector
- Business function
- Finance, risk and legal
- Innovation type
- Process innovation
- AI technology
- Predictive analytics and ML
- Adoption
- Built in-house
- Goal
- Quality and risk
- Evidence
- Company's own claim
Sources
Source summaries
Bloomberg reported Cardoso's account of AI use in monetary-policy work. He attributed better inflation forecasts to sentiment analysis of social-media content, without providing a numerical accuracy measure.
Full details are in the original sources.
