CBN's Monetary Discipline to Stabilize FX and Inflation

A report by Comercio Partner highlights that the Central Bank of Nigeria (CBN) is expected to implement monetary discipline that will stabilize the foreign exchange (FX) market and reduce inflationary pressures in the economy by 2026. According to CBN research analyst Ms. Olamid Ologunagb, the best-case scenario projects the exchange rate to narrow to N1,200 per dollar, with inflation rates declining to between 10% and 11%.

The report anticipates a GDP growth of 4-5% for the year, driven by improvements in the non-oil sector and agricultural output. It notes that the CBN's data-driven policy decisions will hold interest rates steady in 2025, with a potential 50 basis point cut towards the end of the year.

The report also emphasizes that fiscal policy will remain expansionary, with a projected budget deficit above 4.28% of GDP, focusing on infrastructure and social priorities while managing debt service costs.