CBN Strengthens Academic Partnership as Nigeria Advances Inflation Targeting Framework
Oru Leonard
ABUJA — The Central Bank of Nigeria (CBN) has reiterated its resolve to entrench a full-fledged inflation targeting monetary policy regime, while deepening collaboration with academics and economic researchers across the country.
This commitment was underscored during a high-level engagement with the Nigerian Economic Society (NES) and members of the academic community held on March 18, 2026.
Speaking at the session, the CBN Deputy Governor for Economic Policy, Muhammad Sani Abdullahi, described the interaction as both timely and critical, noting that Nigeria’s transition to inflation targeting represents a major shift toward a more transparent, forward-looking, and rules-based monetary policy framework.
He explained that inflation targeting would provide a strong nominal anchor for the economy by stabilising price expectations, reducing the effects of external shocks, and improving policy credibility. According to him, a stable inflation environment would also lower investment risks and support long-term economic planning.
Abdullahi pointed out that ongoing global uncertainties—including geopolitical tensions and fluctuating energy prices—make it imperative for Nigeria to adopt a credible monetary anchor to strengthen economic resilience.
He highlighted key reforms already implemented by the apex bank to support the transition, including a return to orthodox monetary policy tools, withdrawal from quasi-fiscal interventions, and efforts to reinforce institutional independence. He added that foreign exchange reforms—such as rate unification and the introduction of electronic trading platforms—have helped reduce volatility and improve transparency in the market.
The Deputy Governor also cited improvements in financial sector stability through bank recapitalisation efforts and stronger regulatory oversight, alongside better coordination between monetary and fiscal authorities.
According to him, these reforms are beginning to yield results, with inflation declining significantly from 34.8 per cent in late 2024 to 15.1 per cent in early 2026, driven by sustained tightening measures and policy discipline.
Looking ahead, he expressed optimism that Nigeria is on course to achieve low and stable inflation, with a medium-term target of 6 to 9 per cent, provided external shocks remain contained.
In his opening remarks, the Director of Monetary Policy at the CBN, Victor Oboh, stressed the importance of collaboration with the NES, noting that the success of inflation targeting depends not only on technical expertise but also on public trust and effective communication.
He said academics and researchers play a crucial role in shaping economic narratives, influencing expectations, and supporting evidence-based policymaking.
Delivering the keynote address, Baba Yusuf Musa, President and Chairman of Council of the NES, commended the CBN’s reform-driven approach to monetary management and its openness to stakeholder engagement.
Musa reaffirmed the Society’s commitment to supporting the Bank’s stabilisation agenda, emphasising the need for a credible central bank backed by strong institutional collaboration.
Participants at the session, drawn from universities and policy institutions, welcomed the CBN’s reform efforts and pledged continued support for the successful transition to an inflation targeting regime.
