The Central Bank of Nigeria has unveiled its monetary policy agenda for 2026, with a focus on bringing inflation down to single-digit, stabilising the exchange rate, and strengthening the country’s financial system. The bank’s Governor, Olayemi Cardoso, announced the agenda at the 2026 First Monetary Policy Forum in Abuja yesterday. He, however, warned that developments in the Middle East could pose a serious risk to Nigeria’s economy due to their effect on oil prices.
Cardoso assured that the Monetary Policy Committee(MPC) will concentrate on consolidating recent gains in the economy by ensuring that inflation continues to decline, while also maintaining exchange rate stability and improving the flow of funds within the banking system.
“Our next phase is focused on consolidation: anchoring inflation firmly on a downward trajectory toward a single-digit level, sustaining exchange-rate stability, strengthening reserve buffers through organic inflows, deepening interbank market development, and enhancing the robustness of our monetary-policy transmission,” he stated.
Inflation rate as of yesterday stood at 15.06 per cent.
Cardoso explained that achieving the objectives (single-digit inflation, stable exchange rate and strong financial system) would depend on strong cooperation between CBN and fiscal authorities, as well as disciplined implementation of policies and active engagement with stakeholders.
“Achieving these goals requires continued collaboration with the fiscal authority, disciplined policy execution, and strong stakeholder eng5gement, which is the very essence of today’s Forum,” he added.
The CBN boss said the outlook for the economy remains cautiously optimistic, although risks still exist both within and outside the country.
He noted that global growth is expected to be about 3.3 per cent this year, but that it could be affected by tight financial conditions, past monetary tightening and geopolitical tensions.
Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the Federal Government is aiming for stronger economic growth that can improve the lives of Nigerians.
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“Our broader objective remains economic transformation. In the near term, we are targeting GDP(Gross Domestic Product) growth of about 7 per cent—roughly double the pace of inflation. Growth at that level would be strong enough to lift millions of Nigerians out of poverty,” Edun said.
He explained that managing the balance between inflation and growth would remain a key concern for policymakers.
“The relationship between growth and inflation will remain a key focus going forward. The challenge is to strike the right balance—keeping inflation under control while sustaining growth,” he said, noting that similar situations have occurred in other economies, including the United States(U.S.) after the COVID-19 period.
The minister also explained that interest rates are an important tool for controlling inflation, as higher rates increase borrowing costs for the government, businesses, and households. He added that as inflation begins to fall and reforms take effect, interest rates may gradually decline.
Edun stressed that achieving a stable economy requires cooperation across different institutions, noting that no single agency can deliver macroeconomic stability on its own.
He welcomed ongoing efforts to improve transparency in the foreign exchange market, saying such steps would boost confidence, reduce uncertainty, and support lower inflation.
Edun also commended CBN’s move toward an inflation-targeting framework, describing it as an important step that will improve policy credibility, communication, and transparency, while supporting long-term investment and economic growth.