The Central Bank of Nigeria (CBN) says it remains committed to bringing inflation down to single digits by early 2027, despite fresh global shocks that have slowed the country’s disinflationary trend….
The Central Bank of Nigeria (CBN) says it remains committed to bringing inflation down to single digits by early 2027, despite fresh global shocks that have slowed the country’s disinflationary trend.
CBN Governor Olayemi Cardoso said the apex bank had initially expected Nigeria to be firmly on course to achieve single-digit inflation by early 2027 after recording 11 consecutive months of disinflation.
He, however, said renewed geopolitical tensions and higher global energy pressures had lasted longer than anticipated, creating fresh risks to the inflation outlook.
“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,” Cardoso said.
“Unfortunately, these were shocks that came that were not anticipated in that manner and have gone on a lot longer than could have been anticipated.”
Nigeria’s headline inflation moderated marginally to 15.91 per cent in June 2026 from 15.93 per cent in May, according to figures presented at the MPC briefing.
However, the improvement was not broad-based.
Food inflation rose to 17.52 per cent in June from 16.96 per cent in May, reflecting supply constraints in major food-producing areas and higher transportation costs.
Cardoso said the slight moderation in headline inflation nevertheless showed that previous monetary policy measures were beginning to have an effect.
“We are pleased, however, on two counts. One is the fact that inflation has moderated, albeit slightly. It has moderated headline,” he said.
He said the CBN would deepen coordination with fiscal authorities to tackle inflationary pressures and structural rigidities.
“Collaboration between the fiscal and the monetary at a time like this cannot be overemphasised,” Cardoso said.
“We will do what we need to do to ensure that we can contain rising inflation in any manner and bring it to the single digit that we have said earlier and we still continue to stand by that.”
The MPC retained the Monetary Policy Rate at 26.5 per cent, alongside the existing standing facilities corridor and cash reserve requirements, citing heightened global uncertainty and risks from renewed hostilities in the Middle East.
The committee also projected further moderation in inflation in the medium term, citing exchange-rate stability, the lagged effects of previous monetary tightening and improved food supply as the harvest season approaches.
