Fitch Urges CBN to Cautiously Ease Policy in 2026 Outlook Amid Lower Inflation Across Sub-Saharan Africa

Fitch has recommended the Central Bank of Nigeria (CBN) to carefully ease its monetary policy in 2026, considering lower inflation rates across Sub-Saharan Africa. The agency's outlook for Sub-Saharan Africa's sovereigns remains neutral, citing stable growth, moderate inflation, and ongoing reforms.

However, Fitch warns of political activities among youth in upcoming elections as a constraint on fiscal adjustments. The report projects median GDP growth of 4.3% in 2026, with countries like Uganda, Benin, Ethiopia, and Rwanda expected to lead.

Fitch also anticipates a decline in government debt-to-GDP ratios and median inflation rates, supported by improved cocoa output in West Africa and lower oil prices.