CBN Eyes 9% Inflation Target as Reforms Begin to Ease Price Pressures

The Central Bank of Nigeria (CBN) has set its sights on reducing inflation to a single-digit range of 6 to 9 percent, signaling a major shift in monetary policy as recent reforms begin to show early results.

The target was disclosed by Muhammad Sani Abdullahi, deputy governor in charge of economic policy, during a strategic engagement with the Nigerian Economic Society (NES) and members of the academic community in Abuja.

Abdullahi described the move as part of a transition toward an inflation-targeting framework aimed at strengthening transparency and long-term economic stability.

“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,” he said.

Nigeria’s inflation rate stood at about 15 percent in February 2026, a slight drop from 15.1 percent recorded in January, reflecting gradual moderation in price growth.

The CBN said recent policy adjustments — including tighter monetary measures, foreign exchange reforms, and a rollback of quasi-fiscal interventions — are beginning to stabilize the economy.

According to Abdullahi, “Headline inflation has declined sharply from 34.8 percent in late 2024 to 15.1 percent by early 2026,” attributing the improvement to sustained policy discipline.

He added that inflation targeting would serve as a credible anchor for the economy by guiding expectations and reducing volatility.

“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.

Looking ahead, the apex bank maintained that achieving single-digit inflation would depend on consistent policy implementation and resilience against external shocks.

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

Also speaking, Victor Oboh, director of monetary policy at the CBN, emphasised the importance of collaboration with academia, noting that effective communication and public trust are critical to the success of the framework.

In his remarks, Baba Yusuf Musa, president of the NES, endorsed the reform direction, stating: “Nigeria needs a credible Central Bank, and the Nigerian Economic Society needs a Central Bank worth standing with.”

The engagement forms part of the CBN’s broader effort to build consensus around its evolving monetary policy strategy as it seeks to entrench price stability and restore investor confidence in Africa’s largest economy.