Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed the Bank’s commitment to driving inflation firmly into single digits, stating that the current double-digit inflation level is unacceptable as Nigeria consolidates its economic reforms.
Speaking at the 60th Annual Dinner of the Chartered Institute of Bankers of Nigeria (CIBN), Cardoso highlighted the significant progress achieved so far, noting that inflation has more than halved from its peak of 34.6 per cent in November 2024 to 16.05 per cent in October 2025, marking seven consecutive months of disinflation.
The Monetary Policy Committee of the CBN had retained the monetary policy rate at 27 per cent as part of its ongoing inflation-targeting efforts.
He explained that food inflation, which constitutes the largest share of Nigeria’s inflation basket, declined sharply to 13.12 per cent in October from 16.87 per cent in September and 21.87 per cent in August.
According to him, the steady moderation in food prices is helping to restore the real purchasing power of households and businesses.
Cardoso attributed the improvement in inflation dynamics to the CBN’s disciplined return to orthodox monetary policy, which includes enhanced data analytics, stronger policy communication, and a complete cessation of monetary financing of fiscal deficits.
He noted that these measures have improved policy transmission and helped anchor inflation expectations.
The CBN governor also disclosed that Nigeria’s transition toward a full inflation-targeting framework is gaining momentum, with economic models forecasting continued disinflation in 2026.
He said the outlook is supported by stronger domestic production, improved foreign exchange liquidity, and more disciplined liquidity management.
