CBN Targets Single-Digit Inflation with New Framework

The Central Bank of Nigeria (CBN) has announced its target to achieve single-digit inflation as part of a new monetary policy framework. This was disclosed by Deputy Governor Dr.

Muhammad Abdullahi during a session in Abuja on March 18, 2026. The shift in inflation target represents a significant change in Nigeria's monetary policy approach, emphasizing the need for transparency and a forward-looking, rule-based monetary policy system to anchor long-term price stability.

The CBN noted that achieving this target is crucial for stabilizing inflation expectations and supporting long-term investments. The statement highlighted ongoing global uncertainties, including geopolitical tensions and volatile energy prices, necessitating a credible monetary anchor for Nigeria's emerging economy.

The CBN has already implemented several reforms, including a return to orthodox monetary policy tools and foreign exchange market reforms. As of February 2026, the headline inflation rate was reported at 15.06%, down from 34.8% in late 2024, indicating the effectiveness of these measures.