The Central Bank of Nigeria (CBN) has unveiled an ambitious target to bring inflation down to single digits within the next three years, signaling a determined effort to stabilize the nation’s economy amid persistent price pressures. CBN Governor Olayemi Cardoso announced the goal during a press briefing in Lagos on Thursday, outlining a multi-pronged strategy to tame inflation and restore confidence in Nigeria’s monetary framework.
Nigeria’s inflation rate has been a growing concern, with the National Bureau of Statistics reporting a year-on-year headline inflation rate of 32.7% in January 2025, driven largely by soaring food and energy costs. The persistent double-digit inflation has eroded purchasing power, strained household budgets, and fueled public discontent. Against this backdrop, Cardoso’s pledge to achieve single-digit inflation by 2028 marks a bold commitment to reversing the trend.
“Our target is clear: to bring inflation to a single-digit level within the next three years,” Cardoso declared. “This is not just an aspiration—it is a necessity for sustainable economic growth, price stability, and improved living standards for Nigerians.” He acknowledged the challenges ahead but expressed confidence in the CBN’s ability to deliver, citing recent reforms and a tightening monetary policy stance as critical levers.
The CBN’s strategy hinges on several key measures. First, the bank plans to maintain a hawkish monetary policy, with further interest rate hikes expected to curb excess liquidity and dampen demand-driven inflation. The Monetary Policy Rate (MPR) was raised to 26.25% in January 2025, and Cardoso hinted at additional adjustments if inflationary pressures persist. “We will use all tools at our disposal to ensure price stability,” he said.
Second, the CBN aims to address structural bottlenecks exacerbating inflation, particularly in the foreign exchange market. Cardoso noted that volatility in the naira’s value has contributed significantly to imported inflation, with the currency losing over 40% of its value against the dollar in the past year. To stabilize the forex market, the bank is intensifying efforts to boost dollar inflows through diaspora remittances, export proceeds, and foreign investment while cracking down on speculative trading.
Food inflation, which hit 39.2% in January 2025, remains a top priority. The CBN plans to collaborate with the Ministry of Agriculture and state governments to enhance food production and distribution, tackling supply-side constraints such as insecurity in farming regions, poor infrastructure, and reliance on imports. “Inflation cannot be solved by monetary policy alone,” Cardoso emphasized. “We are working with other stakeholders to address these root causes.”
The announcement aligns with broader economic goals under President Bola Ahmed Tinubu’s administration, which has prioritized macroeconomic stability since taking office. In a statement, Finance Minister Wale Edun praised the CBN’s resolve, noting that achieving single-digit inflation would boost investor confidence and pave the way for lower borrowing costs.
Cardoso stressed that the journey to single-digit inflation would require patience and collective effort. “This is a marathon, not a sprint,” he said. “But we are committed to staying the course and delivering results for the Nigerian people.”
As the CBN rolls out its plan, all eyes will be on its ability to balance aggressive monetary tightening with the need to support economic growth—a delicate tightrope that will define Nigeria’s economic trajectory over the next three years.
