By Jemimah Wellington, JKNewsMedia Correspondent
EFFORTS TO reduce inflation to a single digit range have been outlined by the Central Bank of Nigeria (CBN) as part of a medium-term objective tied to a transition toward an inflation targeting monetary policy framework.
JKNewsMedia.com reports that the position was disclosed in a statement issued on Sunday following a strategic session with the Nigerian Economic Society (NES) and members of the academic community held on March 18, where the Deputy Governor in charge of economic policy, Muhammad Sani Abdullahi, addressed participants.
Nigeria’s statistics body reported an inflation rate of 15 percent for February, a slight decline from 15.1 percent recorded in January.
Abdullahi said the transition represents a move toward a more transparent and rules-based system, adding that “by stabilising inflation expectations, we can lower risk premia, support long term investment decisions, and enable policymakers to look beyond short term disruptions.”
He stated that recent reforms, including a return to orthodox monetary policy, an exit from quasi fiscal interventions, and strengthened institutional independence, are laying the foundation for the shift.
“The transition to an inflation targeting framework marks a significant shift toward a transparent, forward looking, and rules based monetary policy system anchored in long term price stability,” Abdullahi said.
He added that inflation targeting would provide a credible nominal anchor for the economy by guiding expectations and reducing the impact of shocks.
Abdullahi said foreign exchange reforms such as rate unification and the introduction of electronic trading platforms have improved price discovery and reduced market volatility.
He said the measures are already yielding results, noting that “headline inflation has declined sharply from 34.8 percent in late 2024 to 15.1 percent by early 2026, driven by sustained monetary tightening and improved policy discipline.”
Looking ahead, Abdullahi said achieving single digit inflation would require consistency and credibility.
“Our medium-term objective is to steer inflation into a single digit range of 6 percent to 9 percent, barring major external shocks,” he said.
Also speaking, Victor Oboh, Director of Monetary Policy at the Central Bank of Nigeria, said collaboration with academia is critical to effective policy implementation.
“The success of any monetary framework, especially inflation targeting, depends not only on technical capacity but also on public trust and effective communication,” Oboh said.
He noted that academics and researchers play a key role in shaping expectations and strengthening the evidence base for policymaking.
In his remarks, Baba Yusuf Musa, President of the Nigerian Economic Society, commended the bank’s reform direction and pledged continued support.
“Nigeria needs a credible Central Bank, and the Nigerian Economic Society needs a Central Bank worth standing with,” Musa said.
JKNewsMedia.com reports that the engagement featured presentations on Nigeria’s transition to inflation targeting, with participants drawn from universities and other institutions.
