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CBN Committed to Inflation Targeting, Sets 6–9% Goal
Deputy Governor Dr. Muhammad Abdullahi outlines CBN’s efforts to stabilize inflation, strengthen monetary policy, and boost transparency while targeting a 6–9% range.
The Central Bank of Nigeria has confirmed its determination to maintain an inflation-targeting approach, aiming to keep headline inflation between 6 and 9 percent.
Dr. Muhammad Abdullahi, Deputy Governor for Economic Policy, made the announcement during a strategic dialogue with the Nigerian Economic Society and academics in Abuja. He described the policy shift as “a significant move toward a transparent, forward-looking, and rules-based monetary policy system anchored in long-term price stability.”
According to Dr. Abdullahi, the inflation-targeting framework is expected to anchor market expectations, cushion supply-side shocks, and enhance accountability. “Stabilizing inflation expectations helps lower risk premia, supports long-term investment plans, and enables policymakers to focus beyond short-term disruptions,” he added.
He cited several reforms supporting the transition, including a return to conventional monetary policy tools, withdrawal from quasi-fiscal interventions, institutional strengthening, and foreign exchange market reforms like rate unification and electronic trading platforms, which have improved stability and price discovery.
Dr. Abdullahi also pointed to bank recapitalization, improved prudential oversight, and coordination with fiscal authorities as key measures that helped reduce headline inflation from 34.8 percent in late 2024 to 15.1 percent by early 2026.
He emphasized that continued policy discipline and a credible institutional framework are critical to achieving the medium-term inflation target of 6–9 percent, provided there are no major external shocks.
Dr. Victor Oboh, CBN’s Director of Monetary Policy, reaffirmed the Bank’s partnership with NES to strengthen policy impact, while NES President Dr. Baba Yusuf Musa commended the Bank, stating: “Nigeria needs a credible Central Bank, and the Nigerian Economic Society needs a Central Bank worth standing with.”
The session highlighted CBN’s commitment to engaging researchers and academics to ensure evidence-based, transparent, and forward-looking monetary policy.
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