The Central Bank of Nigeria’s Governor, Olayemi Cardoso, said that the country’s inflation rate is expected to keep falling, driven by tight monetary conditions, a stable naira and an increase in food supply. He made the remarks during the annual meetings of the International Monetary Fund and the World Bank Group in Washington, D.C.
According to the central bank, inflation dropped to 18.02 percent in September, marking the sixth consecutive decline and the lowest level in three years. Cardoso attributed the fall to the bank’s decisive monetary‑policy actions, which have helped restore price stability and anchor expectations. Inflation has fallen sharply from its peak of 34.19 percent in June 2024.
The Monetary Policy Committee recently eased its stance, cutting the policy rate by 50 basis points to 27.00 percent and lowering the cash‑reserve ratio for commercial banks to 45 percent. The move is intended to maintain a firm anti‑inflationary stance while supporting economic growth.
Reforms in the foreign‑exchange market—such as exchange‑rate unification and greater transparency—have improved price discovery and stabilized the naira. The spread between the official rate and Bureau de Change rates has narrowed to below 2 percent, signalling increased market stability. Better liquidity in the FX market has also reduced the pass‑through of imported inflation, reinforcing price stability.
Nigeria’s foreign reserves remain robust, ranging between $42.67 billion and $43 billion, providing more than eleven months of forward import cover. The central bank remains committed to strengthening the disinflation trend through exchange‑rate stability, durable improvements in food supply and continued moderation in petroleum‑product prices. These efforts aim to create a stable economic environment essential for sustainable growth and development, making the bank’s policies crucial to the nation’s economic future.
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