CBN's Inflation Targeting to Boost Monetary Policy Credibility

The Central Bank of Nigeria (CBN) has introduced an inflation targeting regime aimed at improving transparency, accountability, and credibility in its monetary policy. Dr.

Muhammad Sani Abdullahi, the Deputy Governor and Director of Economic Policy, highlighted that this framework marks a significant shift towards a rules-based monetary policy system, which is crucial for anchoring the Nigerian economy and guiding market expectations. The CBN has received global recognition for its financial policies, notably winning the Central Bank International Acclaim Financial Policy Award in 2026.

The bank's recent reforms, including a return to orthodox monetary policy tools and major foreign exchange market reforms, are expected to stabilize inflation, which hit a 28-year high of 34.80% in December 2024. The CBN aims to achieve a medium-term inflation target of 6-9% while ensuring sustained policy discipline to bolster market trust and support long-term investment plans.