CBN Targets Single-Digit Inflation Despite Global Headwinds

Nigeria’s push to achieve a single-digit inflation rate remains on track despite recent global pressures, the Governor of the Central Bank of Nigeria, Olayemi Cardoso, has said.

Speaking at the Spring Meetings of the International Monetary Fund and World Bank in Washington, Cardoso expressed confidence that Nigeria would meet its inflation target, even as the rate rose slightly to 15.38 per cent in March from 15.06 per cent in February.

According to him, the marginal increase was largely driven by spillover effects from the Middle East crisis but noted that the impact on Nigeria’s economy has been contained.

“We will not relent in our efforts to bring inflation down to single digits. Despite global uncertainties, we are committed to staying the course,” he said.

Data released by the National Bureau of Statistics showed that the March inflation figure marked the first uptick in 12 months, though significantly lower than the 27.35 per cent recorded in March 2025.

On a month-on-month basis, inflation rose to 4.18 per cent in March, compared to 2.01 per cent in February, reflecting short-term price pressures.

Cardoso attributed the relative resilience of the economy to ongoing reforms, including exchange rate adjustments, improved foreign exchange liquidity, and tighter monetary policy measures.

He noted that the apex bank’s initiatives—such as expanding diaspora remittance channels, licensing new International Money Transfer Operators, and implementing a willing buyer–willing seller foreign exchange framework—have strengthened reserves and supported naira stability.

Nigeria is estimated to receive about $23 billion annually in diaspora remittances, with monthly inflows averaging $600 million, a development the CBN says remains critical to boosting foreign exchange supply.

Also speaking, the Director of the African Department at the IMF, Abebe Selassie, commended Nigeria’s macroeconomic reforms, noting that fiscal and monetary adjustments have begun to yield visible results.

He said measures such as exchange rate realignment, subsidy removal, and tighter policy coordination have helped stabilize the economy and improve growth prospects.

However, Selassie warned that the ongoing Middle East crisis poses fresh risks, including rising oil and food prices, higher shipping costs, and tighter global financial conditions, which could affect inflation and growth across Sub-Saharan Africa.

Similarly, the World Bank’s Chief Economist for Africa, Andrew Dabalen, stressed the need for well-structured industrial policies backed by strong institutions, infrastructure, and access to finance to sustain economic gains.

Economic analysts have also pointed to recent policy shifts—such as fuel subsidy removal, bank recapitalisation, and fiscal reforms—as key drivers of improved stability and investor confidence.

They argued that sustained reforms, alongside better coordination between fiscal and monetary authorities, would be critical to achieving lower inflation, stronger growth, and long-term economic resilience.