The Governor of the Central Bank of Nigeria (CBN), Olayemi Cardoso, has identified inflation as the most disruptive force against the economic welfare of Nigerians, reaffirming the CBN’s commitment to reducing inflation to single digits over the medium term.
Speaking at the close of the 2025 IMF and World Bank Spring Meetings in Washington, D.C., Cardoso stressed the urgency of tackling inflation to stabilize household incomes and improve the overall cost of living.
“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.
Nigeria’s inflation rate remains a pressing concern. According to the National Bureau of Statistics (NBS), headline inflation surged to 24.23% in March 2025, up from 23.18% recorded in February. The persistent climb is attributed to escalating food and non-food prices, exacerbating living costs and deepening hardship for millions across the country.
The International Monetary Fund (IMF) projects Nigeria’s inflation to average 26.5% in 2025, following the recent rebasing of the Consumer Price Index (CPI). Although this is an improvement from the 33.2% inflation rate in 2024, forecasts indicate a potential spike to 37.0% by 2026, underscoring ongoing economic volatility.
Despite the inflationary pressures, Cardoso pointed to increasing investor confidence, citing Nigeria’s recent investment forum at the Nasdaq Market Site in New York. The event showcased the nation’s economic reforms and attracted significant attention from global investors and the Nigerian diaspora.
Cardoso expressed optimism that sustained reforms would continue to draw international investment, strengthening Nigeria’s long-term economic outlook.
Also addressing reporters in Washington, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Wale Edun, echoed Cardoso’s concerns while highlighting the government’s broader economic strategy.
Edun outlined plans to achieve 7% GDP growth through heavy investments in critical infrastructure, including digital connectivity and fibre optic expansion. He emphasized the government’s dual focus on stabilizing the economy and creating jobs for young Nigerians.
“By stabilizing the economy and driving private sector participation, we are creating sustainable jobs for young Nigerians and fostering inclusive growth,” Edun stated.
He further reaffirmed the government’s commitment to fiscal discipline and adaptive budget planning, stating that Nigeria’s reform program—covering fiscal, monetary, and structural policies—has earned international recognition for being on the right path.
The latest economic data follows the National Bureau of Statistics’ January 2025 decision to rebase the CPI from 2009 to 2024 to better capture current household spending trends. Following the rebasing, January’s inflation eased to 24.48% from 34.80% in December 2024, before dropping to 23.18% in February and inching back up to 24.23% in March.
Despite the modest improvements, persistent pressures on essential goods, services, and food prices continue to challenge Nigerian households.
As Nigeria grapples with these realities, the combined efforts of the Central Bank, the Federal Government, and international partners are expected to play a pivotal role in steering the country toward economic resilience and sustainable growth.
