CBN Targets Single-digit Inflation Rate of 9%, says Reforms Already Yielding Results

The Central Bank of Nigeria (CBN) says it is working to bring inflation down to a single-digit range of between 6 percent to 9 percent as part of its medium-term objectives in efforts to transition to an inflation-targeting monetary policy framework.

According to a statement on Sunday, Muhammad Sani Abdullah, deputy governor in charge of economic policy, spoke at a strategic session with the Nigerian Economic Society (NES) and members of the academic community on March 18.

Nigeria’s statistics body announced a 15 percent inflation rate for February, a marginal decrease from 15.1 percent reported in January.

Speaking at the event, Abdullahi said the shift represents a move toward a more transparent and rules-based system.

“The transition to an inflation-targeting framework marks a significant shift toward a transparent, forward-looking, and rules-based monetary policy system anchored in long-term price stability,” Abdullahi was quoted as saying.

He said inflation-targeting would provide a credible, nominal anchor for the economy by guiding expectations and reducing the impact of shocks.

“By stabilising inflation expectations, we can lower risk premia, support long-term investment decisions, and enable policymakers to look beyond short-term disruptions,” he said.

Abdullahi said recent reforms, including a return to orthodox monetary policy, the exit from quasi-fiscal interventions, and strengthened institutional independence, are laying the foundation for the transition.

The economist also said foreign exchange (FX) reforms such as rate unification and the introduction of electronic trading platforms have improved price discovery and reduced market volatility.

Abdullahi said the measures are already yielding results.

“Headline inflation has declined sharply from 34.8 percent in late 2024 to 15.1 percent by early 2026, driven by sustained monetary tightening and improved policy discipline,” he said.

Looking ahead, Abdullahi said achieving single-digit inflation would require consistency and credibility.

“Our medium-term objective is to steer inflation into a single-digit range of 6–9 percent, barring major external shocks,” he said.

Also speaking, Victor Oboh, director of monetary policy at the CBN, said collaboration with academia is key to effective policy implementation.

“The success of any monetary framework, especially inflation targeting, depends not only on technical capacity but also on public trust and effective communication,” Oboh said.

He noted that academics and researchers play a critical role in shaping expectations and strengthening the evidence base for policymaking.

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In his remarks, Baba Yusuf Musa, president of the NES, commended the apex bank’s reform direction and pledged continued support.

“Nigeria needs a credible Central Bank, and the Nigerian Economic Society needs a Central Bank worth standing with,” Musa said.

The engagement featured presentations on Nigeria’s transition to inflation targeting, with participants drawn from universities and other institutions.