Despite the global shocks, Mr Cardoso said the CBN still intends to deepen and strengthen its policies to contain rising inflation and bring it to single digits.
Despite global instability, the Central Bank of Nigeria (CBN) remains confident that it can bring inflation down to single digits by early 2027.
Speaking at the end of the 306th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, CBN Governor Olayemi Cardoso stated that the committee was encouraged by the moderation in headline inflation, even though the pace of the decline has been modest.
The apex bank has retained the interest rate at 26.5 per cent for the second time this year, citing the recent resurgence of hostilities in the Middle East.
Nigeria’s headline inflation rate eased slightly to 15.91 per cent in June, down from 15.93 per cent in May, according to the National Bureau of Statistics (NBS).
The country experienced a downward trend in inflation throughout 2025 and into 2026, until conflict in the Middle East triggered a global oil price surge in February. Subsequently, Nigeria’s headline inflation rate rose for three consecutive months, reaching 15.38 per cent in March, 15.69 per cent in April, and 15.93 per cent in May.
Mr Cardoso stated that the monetary tightening measures implemented over the past two years are beginning to deliver results. He maintained that the institution is targeting a single-digit inflation rate by early 2027.
He noted, however, that the recent escalation of hostilities in the Middle East has created unanticipated external shocks that have complicated the disinflation process.
“Again, I think it’s appropriate to remember where we are coming from. Eleven months of disinflation, and quite frankly, from every indication, we were expecting that by early 2027, we would be where we want to be in terms of inflation and firmly on track for single digits. Unfortunately, these were shocks that were not anticipated in that manner and have gone on a lot longer than could have been anticipated,” Mr Cardoso said.
Despite these global shocks, Mr Cardoso emphasised that the CBN intends to deepen and strengthen its policies to contain rising inflation and achieve the single-digit target.
“We are pleased on two counts. One is the fact that inflation has moderated, albeit slightly. That indicates that the tools we have implemented so far are bearing fruit. Secondly, collaboration between the fiscal and the monetary authorities at a time like this cannot be overemphasised.
We intend to deepen and strengthen that collaboration to ensure we can contain rising inflation and bring it into the single digits we have said earlier. We continue to stand by that,” he said.
The governor stated that the moderation in headline inflation demonstrated that the central bank’s policy tools are working. He added that closer collaboration between fiscal and monetary authorities would be critical to containing inflationary pressures arising from external developments.
