CBN says tight policy helped slow inflation by 10 points
Nigeria’s Central Bank Governor, Olayemi Cardoso, has credited sustained monetary tightening for a significant drop in inflation. Research by the Central Bank of Nigeria suggests that these policies reduced headline inflation by up to 10 percentage points. Cardoso emphasized the importance of maintaining bold and consistent actions to ensure price stability. He also highlighted improvements in investor confidence and external reserves, while warning of ongoing risks.
TLDR
- Olayemi Cardoso stated that tight monetary policy accounted for up to 10 percentage points of the decline in headline inflation.
- Headline inflation dropped to 16.05 per cent in October 2025 from 18.02 per cent in September, and is now 8.43 percentage points lower than the 24.48 per cent recorded in January 2025.
- The disinflation has been broad-based, affecting headline, food, and core inflation, with momentum strengthening in recent months.
- Improved exchange rate stability, stronger naira, and rising investor confidence were noted as positive outcomes.
- Cardoso warned of risks from global uncertainties, Nigeria’s designation as a Country of Particular Concern by the United States, and the upcoming 2026 political cycle, stressing the need for continued vigilance in monetary policy.
