Koko Maxwella 
Central Bank of Nigeria headquarters in Abuja
Abuja, Nigeria – The Central Bank of Nigeria intensifies its shift towards a rules-based monetary policy, targeting single-digit inflation to stabilise Africa’s largest economy.
In a Monday statement following a policy dialogue with the Nigerian Economic Society, the apex bank confirms it is transitioning to a full inflation-targeting framework to anchor market expectations and enhance transparency.
Deputy Governor for Economic Policy, Muhammad Abdullahi, says the move signals a decisive break from discretionary policy tools.
“Inflation targeting represents a pivotal move toward a framework that enhances transparency, accountability, and long-term stability,” he states.
The bank reports inflation has declined sharply from 34.8% in late 2024 to 15.1% in early 2026, driven by tighter monetary conditions and policy discipline.
Abdullahi adds that the medium-term goal remains a 6–9% range, though external shocks could pose risks.
Key reforms include exchange rate unification, reduced quasi-fiscal interventions, and improved foreign exchange market liquidity through electronic trading platforms.
Director of Monetary Policy, Victor Oboh, stresses public trust as critical to success.
“The success of inflation targeting depends not just on technical capacity, but also on public trust and effective communication,” he says.
Meanwhile, NES President Baba Musa backs the reforms, describing them as essential to restoring credibility.
“Nigeria needs a credible Central Bank,” he says, pledging institutional support.
Analysts note that sustaining policy discipline and coordination with fiscal authorities will be crucial in maintaining the downward inflation trend.
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Oluwafunbi Bello 
Korede Abdullah 