Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, says the country’s inflation rate will continue to decline, driven by tight monetary policy, a stable exchange rate, and improved food supply.
Cardoso gave the assurance during the ongoing annual meetings of the International Monetary Fund (IMF) and the World Bank Group (WBG) in Washington, D.C., according to a statement released by the apex bank on Thursday.
Nigeria’s inflation rate dropped for the sixth consecutive month to 18.02 percent in September, the lowest in three years, marking a sharp reversal from the 34.19 percent peak recorded in June 2024.“We expect inflation to continue to trend downward in the near term, supported by tight monetary conditions, a stable Naira, and increased food supply,” Cardoso said.
The CBN attributed the improvement to decisive monetary policy actions aimed at restoring price stability and anchoring expectations.
At its September 2025 Monetary Policy Committee (MPC) meeting, the Bank eased slightly by cutting the benchmark interest rate by 50 basis points to 27.00 percent, while lowering the Cash Reserve Ratio (CRR) for commercial banks to 45 percent, maintaining an overall anti-inflationary stance.
The apex bank also highlighted reforms in the foreign exchange (FX) market, including exchange rate unification and enhanced transparency, which helped stabilize the Naira. The gap between the official and Bureau de Change (BDC) rates has now narrowed to less than 2 percent.
Improved FX liquidity, according to the Bank, has reduced imported inflation pressures, while foreign reserves remain stable at between $42.67 billion and $43 billion, equivalent to over eleven months of import cover.
The CBN reaffirmed its commitment to sustaining the disinflation trend through a mix of exchange rate stability, stronger food production, and moderation in energy costs.
