Nigeria’s journey toward achieving single-digit inflation may take longer than expected as persistent global economic shocks continue to put pressure on the economy, according to Central Bank of Nigeria (CBN) Governor Olayemi Cardoso. Speaking after the Monetary Policy Committee’s 306th meeting in Abuja, Cardoso revealed that while the country had recorded 11 consecutive months of disinflation, external developments have disrupted earlier projections that inflation would be firmly under control by early 2027.
The CBN governor pointed to global energy market pressures and tensions around the Strait of Hormuz as key factors contributing to the delay. According to him, these international challenges have lasted far longer than anticipated, creating uncertainty for policymakers and making it difficult to predict how soon inflationary pressures will ease. He stressed that Nigeria must continue to adapt and respond to these realities rather than hope they disappear on their own.
Despite the setbacks, Cardoso expressed confidence that the Central Bank’s policy measures are beginning to produce results. He noted that although the decline in headline inflation has been gradual, it signals that the monetary tools introduced by the apex bank are having a positive impact. He reaffirmed the CBN’s commitment to bringing inflation down to single digits and maintaining price stability across the economy.
Cardoso also emphasized the importance of stronger cooperation between fiscal and monetary authorities, describing such collaboration as essential in the fight against rising prices. He said both arms of economic management must work closely together to sustain progress and shield the economy from external shocks. The governor assured Nigerians that the Central Bank would continue taking necessary actions to curb inflation and protect economic stability.
Beyond inflation, Cardoso highlighted signs of improvement in Nigeria’s broader economic outlook. He said recent reforms have strengthened macroeconomic stability, improved external reserves, and created a more attractive environment for investors. While acknowledging the hardships many Nigerians have faced during the reform process, he maintained that the foundations being laid today are crucial for long-term growth, job creation, and a more resilient economy.
source: The Cable
