CBN yarn say dem dey serious about inflation targeting for Naija economy

Central Bank of Nigeria (CBN) don come out again to talk say dem dey fully committed to dis inflation targeting monetary policy wey dem dey implement. Na Deputy Governor for Economic Policy, Dr Muhammad Abdullahi, yarn dis matter during one strategic meeting with Nigerian Economic Society (NES) and academic community for Abuja.

Abdullahi talk say dis dialogue na timely and essential matter for Nigeria ongoing economic reform program. E address gathering of scholars, directors, and policy experts as part of sensitisation program wey dem organise. E explain say dis transition to inflation-targeting framework na big shift toward transparent, forward-looking, and rules-based monetary policy system wey go anchor for long-term price stability.

“Inflation targeting go serve as crucial nominal anchor for Nigerian economy,” Abdullahi yarn. “By guiding market expectations and reducing impact of supply-side shocks, dis framework go improve transparency, accountability, and overall credibility of monetary policy. Stabilising inflation expectations go help lower risk premia, support long-term investment plans, and make policymakers fit look beyond short-term disruptions.”

E highlight say with global uncertainties like geopolitical tensions and volatile energy prices dey put pressure on emerging economies, credible monetary anchor important to bolster Nigeria resilience. E talk about several reforms wey dem don already put for ground to support dis transition.

According to am, these reforms include return to orthodox monetary policy tools, withdrawal from quasi-fiscal activities, and strengthening of institutional independence. E also talk say major foreign exchange market reforms, including rate unification and deployment of electronic trading platforms, don reduce volatility and improve price discovery.

Deputy Governor add say additional measures like bank recapitalisation and improved prudential oversight don further stabilise financial sector. E talk say enhancements in policy coordination with fiscal authority and communication don also increase coherence across monetary operations.

Abdullahi yarn say these reforms don already begin dey show results, with headline inflation don drop sharply from 34.8 percent for late 2024 to 15.1 percent by early 2026. E say na sustained monetary tightening and improved policy discipline cause dis positive outcome.

“Nigeria dey firmly on track to achieve low and stable inflation,” Abdullahi declare. “Medium-term target na to steer inflation into single-digit range of 6-9 percent, unless major external shocks happen. To achieve dis one go require sustained policy discipline, anchored expectations, and credible institutional framework wey markets fit trust.”

For same meeting, Dr Victor Oboh, Director of Monetary Policy Department for CBN, reaffirm CBN commitment to strengthening collaboration with NES. Oboh talk say na part of efforts to enhance monetary policy effectiveness and deepen macroeconomic stability.

E explain say success of any monetary framework, especially inflation targeting, depend not only on technical capacity but also on public trust and effective communication. According to am, academics, researchers, and thought leaders play vital role in shaping narratives, influencing expectations, and building evidence base for sound policy decisions.

Oboh acknowledge potential challenges including short-term trade-offs and need to reinforce institutional credibility. E express confidence say combined expertise of CBN and NES go significantly advance Nigeria monetary policy goals, building sound, evidence-based policy decisions.

President and Chairman of Council of NES, Dr Baba Musa, praise CBN for wetin e describe as bold and reform-minded approach to monetary and financial sector management. Musa commend apex bank for openness, policy direction, and willingness to collaborate with academic community.

E reaffirm commitment of NES to support CBN stabilisation efforts. “Nigeria need credible Central Bank, and Nigerian Economic Society need Central Bank worth standing with,” Musa talk. E confirm say Society ready to collaborate closely with Bank on Nigeria long-term economic path.

Dis engagement feature detailed presentation on Nigeria transition to inflation targeting. Participants wey come from Nigerian universities and other public and private institutions praise CBN reform agenda, especially transition to inflation targeting, and reiterate dem commitment to support Bank efforts.

Experts wey dey observe dis development talk say dis renewed commitment to inflation targeting na positive step for Nigerian economy. Dem say if CBN continue with dis policy discipline and maintain collaboration with stakeholders, Nigeria fit achieve single-digit inflation target wey dem set.

However, some analysts warn say external factors like global oil prices and food supply disruptions fit still affect inflation rate. Dem advise say government must combine monetary policy with fiscal measures to address structural issues wey dey cause inflation for Nigeria.

Overall, dis meeting between CBN and academic community show say monetary authorities serious about using evidence-based approach to manage Nigeria economy. As country continue dey navigate economic challenges, dis collaboration between policymakers and researchers go remain important for achieving sustainable growth and stability.