CBN targets single-digit inflation

The Central Bank of Nigeria has mentioned it’s heading in the right direction to scale back inflation to single digits as a part of its transition to an inflation-targeting financial coverage framework.

This was disclosed in a press release issued by the apex financial institution on Sunday following an engagement with the Nigerian Financial Society and members of the educational neighborhood in Abuja.

Talking on the session held on March 18, 2026, the CBN Deputy Governor in command of Financial Coverage, Dr Muhammad Abdullahi, mentioned the shift to inflation concentrating on represents a significant change in Nigeria’s financial coverage method.

He described the engagement as well timed and important to Nigeria’s ongoing financial reforms, including that the brand new framework would strengthen coverage credibility and long-term worth stability.

Based on the assertion, “the transition to an inflation-targeting framework marks a big shift towards a clear, forward-looking, and rules-based financial coverage system anchored in long-term worth stability.”

Abdullahi mentioned the framework would function a key anchor for the economic system by shaping expectations and decreasing the affect of exterior shocks.

He famous that inflation concentrating on would function a vital nominal anchor for the Nigerian economic system, including that stabilising inflation expectations would assist decrease danger premia and assist long-term investments.

The CBN famous that ongoing international uncertainties, together with geopolitical tensions and unstable vitality costs, make the necessity for a reputable financial anchor extra pressing for rising economies like Nigeria.

The assertion highlighted a number of reforms already applied by the financial institution to assist the transition, together with a return to orthodox financial coverage instruments and a gradual withdrawal from quasi-fiscal interventions.

It added that international change market reforms, similar to fee unification and the introduction of digital buying and selling platforms, have improved worth discovery and lowered volatility.

The apex financial institution additionally cited enhancements in banking sector stability via recapitalisation efforts and stronger prudential oversight, alongside higher coordination with fiscal authorities.

Based on Abdullahi, these measures are already producing outcomes. “Headline inflation declined sharply from 34.8 per cent in late 2024 to fifteen.1 per cent by early 2026, pushed by sustained financial tightening and improved coverage self-discipline,” the assertion mentioned.

Wanting forward, the CBN mentioned it’s firmly on observe to realize low and secure inflation within the medium time period. “The medium-term goal is to steer inflation right into a single-digit vary of 6–9 per cent, barring main exterior shocks,” the assertion learn.

Abdullahi additional famous that reaching this goal would depend upon sustained coverage self-discipline, well-anchored expectations, and robust institutional credibility.

Earlier, the Director of the Financial Coverage Division, Dr Victor Oboh, mentioned collaboration with the educational neighborhood is vital to enhancing financial coverage effectiveness.

He famous that the success of inflation concentrating on relies upon not solely on technical design but additionally on public belief and communication.

Oboh famous that lecturers, researchers, and thought leaders play an important position in shaping narratives, influencing expectations, and constructing the proof base for sound coverage choices.

In his remarks, the President of the Nigerian Financial Society, Dr Baba Yusuf Musa, recommended the CBN’s reform path and pledged continued assist for its stabilisation efforts.

“Nigeria wants a reputable Central Financial institution, and the Nigerian Financial Society wants a Central Financial institution price standing with,” he mentioned.

Contributors on the session, drawn from universities and coverage establishments, additionally expressed assist for the financial institution’s transition to inflation concentrating on, describing it as a needed step towards strengthening macroeconomic stability.

Nigeria’s headline inflation fee eased marginally to fifteen.06 per cent in February 2026, in accordance with the Client Worth Index report launched by the Nationwide Bureau of Statistics.