Olayemi Cardoso, Governor of the Central Bank of Nigeria (CBN), has expressed optimism that inflation in Nigeria will continue to ease, driven by tight monetary policies, a stable naira, and improved food supply. Speaking in Washington during the IMF–World Bank Annual Meetings, Cardoso noted that headline inflation fell to 18.02 percent in September, marking the lowest level in three years and the sixth consecutive monthly decline. The latest data from the National Bureau of Statistics show a significant drop from the 34.19 percent recorded in June 2024, reflecting renewed investor confidence in the CBN’s anti-inflation strategy.
Cardoso explained that the bank’s policy measures are beginning to deliver results. He said inflation is expected to trend downward in the near term, supported by stable exchange rates and increased agricultural output. To curb rising prices, the CBN raised the Monetary Policy Rate from 18.75 percent to 27.50 percent between July 2023 and July 2025, before slightly easing it to 27 percent in September. The Cash Reserve Ratio for commercial banks was also increased to 50 percent and later adjusted to 45 percent, maintaining what the CBN described as a firm anti-inflationary stance.
Core inflation slowed to 19.53 percent, while food inflation dropped to 16.87 percent, following improvements in agricultural supply chains and lower logistics costs. The central bank said that ongoing foreign exchange market reforms have helped reduce imported inflation. With the unification of exchange rates and greater transparency in the market, the naira has remained stable, and the gap between the official and Bureau de Change rates has narrowed to below two percent, a major improvement from last year’s double-digit spread.
According to the CBN, improved FX liquidity and declining volatility have strengthened price stability. The bank also reported that Nigeria’s foreign reserves have risen above 43 billion dollars, providing over eleven months of import cover. This growth, it said, stems from sustained foreign exchange inflows and stronger investor confidence.
Although inflation remains above the CBN’s target, the pace of disinflation has eased pressure on households and businesses. Analysts believe the trend could create room for future policy adjustments if it continues. The CBN said its focus now is to consolidate the gains recorded so far through stable exchange rates, better food production, and moderated energy costs. Cardoso reaffirmed the apex bank’s commitment to restoring macroeconomic stability and anchoring inflation expectations, stressing that monetary policy will continue to support a stable and predictable environment for economic growth.
