CBN Governor, Yemi Cardoso
Nigeria’s inflation rate has fallen to 18.02%, marking its lowest level in three years and continuing a six-month streak of decline, according to the Governor of the Central Bank of Nigeria (CBN), Yemi Cardoso.
Speaking in Washington on Thursday during the ongoing IMF and World Bank Annual Meetings, Cardoso attributed the steady decline in inflation to a combination of tight monetary policy measures and ongoing foreign exchange market reforms.
Quoting fresh data from the National Bureau of Statistics (NBS), he noted that core inflation eased to 19.53%, while food inflation dropped to 16.87% in September. This marks a significant turnaround from the peak of 34.19% recorded in June 2024.
“This sustained drop in inflation reflects the CBN’s firm commitment to restoring price stability and anchoring inflation expectations,” Cardoso said.
He highlighted the CBN’s aggressive monetary policy stance over the past year, including a series of interest rate hikes.
“In response to inflationary pressures, the Monetary Policy Rate (MPR) was raised from 18.75% to 27.50% through a sustained tightening cycle,” he explained. “We also increased the Cash Reserve Ratio (CRR) to 50% for commercial banks and 16% for merchant banks.”
In September, the CBN began to ease slightly, reducing the MPR to 27.00% and the CRR for commercial banks to 45%, while maintaining a strong anti-inflationary outlook.
Cardoso also pointed to reforms in the foreign exchange (FX) market—including exchange rate unification and improved market transparency—as key contributors to inflation control.
“The naira has since stabilised, with the gap between the official and Bureau de Change (BDC) rates narrowing to below 2%. This improved FX liquidity has reduced imported inflation and helped reinforce price stability,” he said.
According to the CBN Governor, Nigeria’s foreign reserves remain healthy at over $43 billion, providing more than 11 months of import cover, backed by steady forex inflows.
Looking ahead, Cardoso said the bank remains focused on sustaining the disinflation trend through exchange rate stability, improved food supply, and lower petroleum product prices.
“We are optimistic that the current momentum will continue,” he added, noting that tight monetary conditions, a stable exchange rate, and better agricultural output would continue to drive inflation downward in the near term.
The latest inflation report and CBN’s outlook come amid broader efforts by Nigerian authorities to stabilise the economy, reassure investors, and rebuild confidence following a period of economic uncertainty.
