The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has described inflation as the most significant threat to the economic welfare of Nigerians, pledging the CBN’s commitment to reducing inflation to single digits over the medium term.
Speaking at the conclusion of the 2025 IMF and World Bank Spring Meetings in Washington, D.C., Cardoso emphasized the urgency of tackling inflation to stabilize household incomes and improve the cost of living across the country.
“Inflation remains the most disruptive force against the economic welfare of Nigerians. Our focus is to bring it down to single digits over the medium term,” Cardoso said.
Rising Inflation Rates and Economic Pressures
In March 2025, Nigeria’s headline inflation rate surged to 24.23%, up from 23.18% in February, according to the National Bureau of Statistics (NBS).
This sharp increase reflects persistent pressures on food prices, essential goods, and the broader cost of living, exacerbating economic challenges for millions of Nigerians.
The NBS report attributes the inflationary trend to rising prices of both food and non-food items, highlighting the need for sustainable monetary interventions.
Meanwhile, the IMF projects Nigeria’s inflation rate to average 26.5% in 2025, following the recent rebasing of the Consumer Price Index (CPI).
Although this marks a decline from 33.2% in 2024, inflation is expected to spike again to 37.0% by 2026, underlining the volatility of Nigeria’s economic landscape.
Investment and Reform Momentum
Despite these challenges, Cardoso pointed to growing investor confidence in Nigeria’s reform agenda.
He referenced the country’s recent high-level investment forum at the Nasdaq Market Site in New York.
The event showcased Nigeria’s economic reforms and attracted interest from global investors and the diaspora, signaling optimism for the nation’s future economic trajectory.
Federal Government’s Economic Strategy
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, echoed Cardoso’s sentiments, emphasizing the government’s focus on economic growth and job creation.
- Speaking at the same IMF and World Bank meetings, Edun outlined Nigeria’s ambitious target of achieving 7% economic growth, supported by investments in critical infrastructure such as digital connectivity, data access, and fibre optic networks.
- Edun highlighted the government’s strategy to mobilize domestic revenue and crowd in private sector investments, creating an environment conducive to business growth.
“By stabilizing the economy and driving private sector participation, we are creating sustainable jobs for young Nigerians and fostering inclusive growth,” Edun stated.
He also reaffirmed the government’s commitment to fiscal discipline, noting that Nigeria’s reform programme—spanning fiscal, monetary, and structural policies—has been recognized by international partners as being on the right track.
“Despite global uncertainty, Nigeria is poised for resilient, inclusive growth,” Edun added.
Pragmatic Fiscal Planning
Edun emphasized the importance of flexible fiscal planning, stating, “A budget is a statement of intent; it must be continually recalibrated to reflect on-ground realities and available resources.”
This approach emphasized the government’s focus on adapting to economic challenges while maintaining a clear vision for growth and stability.
As Nigeria navigates its economic challenges, the combined efforts of the CBN, the Federal Government, and international partners aim to address inflation, foster investment, and create a sustainable path toward economic prosperity.
What you should know
In January 2025, the NBS updated the CPI base year from 2009 to 2024 to reflect more current household spending patterns.
- As a result, inflation figures were recalibrated, with the January rate easing to 24.48% from 34.80% in December 2024.
- The moderation continued in February, falling to 23.18%, before inching back up to 24.23% in March, indicating persistent cost-of-living pressures.
