Nigeria's Inflation Hits 15.69% Amid Economic Challenges

The Central Bank of Nigeria (CBN) held its Monetary Policy Rate (MPR) at 26.5% during the 305th Monetary Policy Committee (MPC) meeting, despite a rise in inflation to 15.69% year-on-year in April 2026, up from 15.38% in March. CBN Governor Olayemi Cardoso noted that the inflation increase was primarily due to rising food and transport costs, influenced by external shocks, particularly from the Middle East crisis.

The MPC believes the inflation trend is temporary and remains confident that the current macroeconomic environment will support a return to a disinflationary trend. However, the Nigerian Economic Summit Group (NESG) projects that single-digit inflation may not stabilize until 2029, while the World Bank cautions that achieving this target in the short term is unrealistic without addressing domestic supply constraints.

The CBN continues to rely on monetary tools to manage inflationary pressures, including adjusting money supply and interest rates.