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The Central Bank of Nigeria has reaffirmed its commitment to reducing inflation to single digits as it transitions toward a full-fledged inflation-targeting monetary policy framework.
This position was outlined in a statement released after a policy engagement with the Nigerian Economic Society and members of the academic community in Abuja.
Speaking at the session, the CBN’s Deputy Governor for Economic Policy, Muhammad Abdullahi, described the shift as a significant evolution in Nigeria’s monetary policy approach. He noted that adopting an inflation-targeting regime would enhance transparency, strengthen credibility, and anchor long-term price stability.
According to the bank, the framework introduces a more forward-looking and rules-based system designed to guide expectations, reduce economic uncertainty, and cushion the impact of external shocks.
Abdullahi emphasised that a stable inflation environment is critical to lowering risk premiums and unlocking long-term investment. He added that the framework would serve as a key anchor for macroeconomic stability, particularly in the face of global uncertainties such as geopolitical tensions and energy price volatility.
To support this transition, the apex bank highlighted several ongoing reforms. These include a return to orthodox monetary policy tools, a gradual withdrawal from quasi-fiscal interventions, and improvements in foreign exchange market operations through rate unification and electronic trading platforms.
The CBN also pointed to strengthened banking sector resilience driven by recapitalisation efforts and enhanced prudential oversight, alongside improved coordination with fiscal authorities.
The bank noted that these measures are already yielding results, with inflation declining significantly from 34.8 per cent in late 2024 to around 15 per cent in early 2026.
Looking ahead, the CBN reiterated its medium-term objective of achieving inflation within a 6–9 per cent range, barring major external shocks. Abdullahi stressed that reaching this target would depend on sustained policy discipline, effective communication, and strong institutional credibility.
Also speaking at the event, the Director of the Monetary Policy Department, Victor Oboh, highlighted the importance of collaboration with academia in improving policy outcomes. He noted that public trust and clear communication are essential to the success of inflation targeting.
In his remarks, the President of the Nigerian Economic Society, Baba Yusuf Musa, expressed support for the CBN’s reform direction, describing it as a necessary step toward strengthening macroeconomic stability.
Participants at the session, including academics and policy experts, also endorsed the transition, noting that a credible and transparent monetary framework is essential for sustaining economic confidence and long-term growth.
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