The Central Bank of Nigeria (CBN) has linked the slowing down of Nigeria’s headline inflation rate over the past months partly to its decisive monetary policy actions to restore price stability and anchor expectations.
The latest Consumer Price Index data released by the National Bureau of Statistics (NBS) indicated that the headline inflation eased to to 18.02 percent fell for the sixth consecutive month, its lowest level in three years
According to the statistics agency, Core inflation slowed to 19.53 percent, while food inflation moderated to 16.87 percent in the month under review
In a statement issued on Thursday regarding the September headline inflation, the CBN maintained that the sustained decline marked a significant reversal from the inflationary peak of 34.19 percent in June 2024, reflecting the impact of its decisive monetary policy actions to restore price stability and anchor expectations.
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The apex bank stated that in response to those pressures, it raised its Monetary Policy Rate (MPR) from 18.75 percent to 27.50 percent through a sustained tightening cycle, while increasing the Cash Reserve Ratio (CRR) to 50 percent for commercial banks and 16 percent for merchant banks.
It recalled that at its September 2025 meeting, the Bank eased slightly, lowering the MPR by 50 basis points to 27.00 percent and the CRR for commercial banks to 45 percent, while maintaining a firm anti-inflationary stance.
In addition, the CBN stated that monetary tightening was complemented by reforms in the foreign exchange market, including exchange rate unification and enhanced transparency to improve price discovery in the market just as the naira has since stabilized, with the spread between the official and Bureau de Change (BDC) rates narrowing to below 2 percent.
While noting that improved liquidity in the FX market has helped reduce the pass through of imported inflation and reinforced price stability, the apex bank also stated that foreign reserves remain above $43 billion, providing more than eleven months of forward import cover, supported by sustained forex inflows.
The apex bank restated its commitment to strengthening the disinflation trend, supported by a combination of exchange rate stability, durable improvements in food supply, and continued moderation in petroleum product prices.
Commenting on the disinflation trend in the economy and the apex bank’s expectations in the months ahead at the ongoing Annual meetings of the International Monetary Fund and the World Bank Group,, the Governor of the CBN, Mr. Olayemi Cardoso, projected: “We expect inflation to continue to trend downward in the near term, supported by tight monetary conditions, a stable naira, and increased food supply.”
