The Central Bank of Nigeria (CBN) has set a medium-term inflation target of 6–9% as it moves toward a full inflation-targeting monetary policy framework aimed at ensuring price stability and improving transparency.
Speaking during a policy engagement with the Nigerian Economic Society (NES) and academics on March 18, 2026, Deputy Governor Muhammad Sani Abdullahi said the shift reflects a more rules-based and credible approach to monetary policy. He emphasized that achieving single-digit inflation will require consistent policy discipline, strong institutional credibility, and well-anchored market expectations, while noting that global risks like geopolitical tensions and energy price volatility could pose challenges.
The CBN highlighted early signs of progress, with inflation dropping significantly from 34.8% in late 2024 to 15.1% by early 2026, driven by tighter monetary policies and internal reforms. It added that inflation targeting would act as a key anchor for economic stability, helping reduce investment risks and support long-term planning.
To support this transition, the Bank has implemented reforms such as adopting orthodox monetary tools, scaling back quasi-fiscal interventions, unifying foreign exchange rates, and introducing electronic FX trading platforms to improve market efficiency. It also noted ongoing bank recapitalization and stronger regulatory oversight as measures reinforcing financial stability.
Additionally, CBN officials stressed the importance of collaboration with academia in building trust and improving policy effectiveness. NES President Baba Yusuf Musa praised the reforms, describing them as necessary for strengthening Nigeria’s economic framework and pledged continued support from the academic community.
