The Central Bank of Nigeria (CBN) has reaffirmed its commitment to bringing inflation down to single-digit levels as it transitions to an inflation-targeting monetary policy framework. The apex bank outlined its strategy in a statement following an engagement with the Nigerian Economic Society and academic experts in Abuja. The move is aimed at strengthening policy credibility and ensuring long-term price stability for the Nigerian economy.
Speaking at the session on March 18, 2026, CBN Deputy Governor for Economic Policy, Dr. Muhammad Abdullahi, described the shift as a major transformation in the country’s monetary policy approach. “This framework is designed to be transparent, forward-looking, and rules-based, anchored in long-term price stability,” he said. Abdullahi emphasized that inflation targeting would shape market expectations and reduce the impact of external shocks on the economy.
The apex bank highlighted several reforms supporting the transition, including a return to orthodox monetary tools, gradual withdrawal from quasi-fiscal interventions, and reforms in the foreign exchange market. Measures such as rate unification and electronic trading platforms have improved price discovery and reduced volatility, while efforts in banking sector recapitalization and better coordination with fiscal authorities have strengthened economic stability.
The results of these reforms are already visible. Headline inflation, which peaked at 34.8% in late 2024, fell to 15.1% by early 2026. The CBN said it remains on track to achieve its medium-term goal of steering inflation into a single-digit range of 6–9%, provided there are no major external shocks. Dr. Abdullahi stressed that achieving this target requires sustained policy discipline, well-anchored expectations, and strong institutional credibility.
Experts at the Abuja engagement welcomed the CBN’s reform path. Dr. Victor Oboh, Director of the Monetary Policy Department, highlighted the importance of collaboration with academics to improve monetary policy effectiveness. Dr. Baba Yusuf Musa, President of the Nigerian Economic Society, praised the bank’s stabilisation efforts, calling for continued public trust and support. The session underscored the growing consensus that a credible Central Bank is essential for Nigeria’s economic resilience.
source: punch