Juliet Ezeh
The Central Bank of Nigeria has said it remains on track to reduce inflation to single digits as part of its transition to an inflation-targeting monetary policy framework.
The disclosure was contained in a statement issued by the apex bank following an engagement with the Nigerian Economic Society and members of the academic community in Abuja.
Speaking at the session, the CBN Deputy Governor in charge of Economic Policy, Muhammad Abdullahi, said the shift represents a significant change in Nigeria’s monetary policy approach, aimed at improving transparency and strengthening long-term price stability.
According to the bank, the transition introduces a forward-looking and rules-based framework designed to anchor inflation expectations and reduce economic uncertainty.
The CBN said its medium-term objective is to steer inflation into a single-digit range of between 6 and 9 per cent, barring major external shocks.
Abdullahi noted that achieving this target would depend on sustained policy discipline and strong institutional credibility.
He added that stabilising inflation expectations would help lower risk premiums and support long-term investment in the economy.
Data from the National Bureau of Statistics shows that Nigeria’s headline inflation has begun to ease, declining from 34.8 per cent in late 2024 to about 15 per cent in early 2026.
The CBN attributed the moderation to sustained monetary tightening and improved policy coordination.
The bank said recent reforms, including a return to orthodox monetary policy tools and a gradual withdrawal from quasi-fiscal interventions, are supporting the disinflation trend.
The apex bank highlighted several measures implemented to support the transition, including foreign exchange market reforms such as rate unification and the introduction of electronic trading platforms.
It also cited improvements in banking sector stability through recapitalisation efforts and enhanced prudential oversight.
According to the CBN, these steps are aimed at improving price discovery, reducing market volatility, and strengthening the overall financial system.
The bank warned that global uncertainties, including geopolitical tensions and volatile energy prices, continue to pose risks to inflation management, particularly for emerging economies like Nigeria.
It noted that a credible monetary policy anchor is critical to cushioning the impact of such external shocks.
The Director of the Monetary Policy Department, Victor Oboh, said collaboration with the academic community is essential to improving policy effectiveness.
He noted that the success of inflation targeting depends not only on its technical design but also on public trust and clear communication.
In his remarks, the President of the Nigerian Economic Society, Baba Yusuf Musa, commended the CBN’s reform direction and expressed support for its stabilisation efforts.
Westbridge reports that while the move to inflation targeting signals a shift toward a more predictable policy framework, its effectiveness will depend on consistent implementation and coordination with fiscal authorities.
The report notes that sustained moderation in inflation could improve purchasing power, support business planning, and enhance investor confidence if current reforms are maintained.
Juliet Ezeh is the founder and chief reporter at Westbridge Reporters with over 7 years of experience in journalism. She covers crime, industry, policy, and social developments, delivering timely and accurate reporting.