CBN projects continued inflation decline in 2026

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed the Bank’s commitment to driving inflation firmly into single digits, declaring that the current double-digit level “cannot be accepted” as Nigeria consolidates its economic reforms. Speaking at the 60th annual dinner of the Chartered Institute of Bankers of Nigeria (CIBN), Cardoso highlighted […]

The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has reaffirmed the Bank’s commitment to driving inflation firmly into single digits, declaring that the current double-digit level “cannot be accepted” 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 already made, noting that inflation has more than halved from its peak of 34.6% in November 2024 to 16.05% in October 2025, marking seven consecutive months of disinflation.

Our correspondent reports that the Monetary Policy Committee of the CBN had retained the interest rate at 27% as it continues its inflation targeting measures.

He explained that food inflation, the largest component of Nigeria’s inflation basket, had dropped sharply to 13.12% in October, down from 16.87% in September and 21.87% in August. 

This steady decline, he said, is helping to restore the real purchasing power of households and businesses.

Cardoso attributed the progress to the CBN’s disciplined return to orthodox monetary policy, citing improved data analytics, strengthened communication, and a complete halt to monetary financing of fiscal deficits. 

These measures, he said, have strengthened policy transmission and anchored inflation expectations.

He also revealed that Nigeria’s transition toward a full inflation-targeting framework is gaining traction, with models projecting continued disinflation in 2026, supported by stronger domestic production, better foreign exchange liquidity, and more disciplined liquidi