CBN aims for single-digit inflation by 2027 despite global issues

The Central Bank of Nigeria (CBN) is hopeful it can reduce inflation to single digits by early 2027, despite global challenges.

At the end of the 306th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, CBN Governor Olayemi Cardoso said the committee is pleased with the slight drop in headline inflation, even though the decrease has been slow.

For the second time this year, the apex bank kept the interest rate at 26.5 percent. This decision was influenced by the recent rise in violence in the Middle East.

Nigeria's headline inflation rate fell slightly to 15.91 percent in June from 15.93 percent in May, according to the National Bureau of Statistics (NBS).

Inflation in Nigeria had been on a downward path throughout 2025 and into 2026. But in February, the conflict in the Middle East caused global oil prices to spike. This led to Nigeria's headline inflation rate increasing for three months in a row, hitting 15.38 percent in March, 15.69 percent in April, and 15.93 percent in May.

Mr Cardoso said the monetary tightening measures from the last two years are starting to show results. He insisted that the CBN is focused on achieving a single-digit inflation rate by early 2027.

He also pointed out that the recent surge in conflict in the Middle East has caused unexpected challenges that make it harder to lower inflation.

"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 issues, Mr Cardoso stressed that the CBN will continue to strengthen its policies to manage rising inflation and reach the single-digit goal.

"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 noted that the drop in headline inflation shows that the central bank’s policy measures are effective. He added that working closely with fiscal authorities will be key to managing inflationary pressures from external events.