Cardoso says prolonged geopolitical tensions and energy market disruptions have slowed inflation targets despite months of progress….
Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has said persistent global economic disruptions are slowing the country’s journey toward achieving single-digit inflation, despite nearly a year of steady progress in easing price pressures.
Speaking after the 306th Monetary Policy Committee (MPC) meeting in Abuja on Tuesday, Cardoso explained that the central bank had projected inflation would be firmly on course to reach single-digit levels by early 2027. However, he said unexpected global developments have forced a reassessment of that timeline.
According to the CBN governor, geopolitical tensions, including developments around the Strait of Hormuz and continued pressure on global energy markets, have created fresh inflationary risks that have lasted longer than policymakers initially expected.
“We were expecting that by early 2027, we would be where we want to be in terms of inflation and firmly on track for single digit,” Cardoso said.
“Unfortunately, there were shocks that were not anticipated in that manner, and they have lasted much longer than expected. At this stage, it is difficult to predict how long they will continue, but they are realities we must manage.”
Despite the external pressures, Cardoso said recent data showing a modest decline in headline inflation suggests that the CBN’s monetary tightening measures are beginning to produce results.
He stressed that sustaining the downward trend would require stronger coordination between fiscal and monetary authorities, describing policy alignment as essential to keeping inflation under control.
“Inflation has moderated, even if only slightly. That tells us the measures we have implemented are beginning to have the desired impact,” he said.
“We remain committed to doing everything necessary to bring inflation down to single-digit levels, and closer collaboration between fiscal and monetary authorities will be critical in achieving that objective.”
Reforms Building a More Stable Economy
Cardoso also defended the government’s ongoing economic reforms, acknowledging that while the adjustment process has been difficult for many Nigerians, it is helping to create a more stable macroeconomic environment.
He argued that restoring economic stability is fundamental to attracting investment and supporting long-term growth.
“This has been a difficult journey, but stability is the foundation of every growing economy,” he said. “Without stability, investment will not come, and without investment, sustainable economic growth becomes difficult.”
The CBN governor added that Nigeria’s improving external reserves and broader macroeconomic indicators demonstrate that the country’s reform agenda is beginning to gain recognition internationally.
According to Cardoso, the progress made so far reinforces confidence that ongoing reforms will strengthen the economy over the long term, even as policymakers continue to navigate global economic uncertainties.
