Nigeria's Central Bank Adopts Formal Inflation Targets, Aiming for 16.5% in 2026
Nigeria's Central Bank Adopts Formal Inflation Targets, Aiming for 16.5% in 2026
The phased plan aims to reduce inflation to 16.5% in 2026, with a tolerance band of ±2 percentage points, and further down to 13% by 2027, according to the bank's 2026 macroeconomic outlook.
The CBN's strategy is supported by an improved economic forecast, according to the outlook:
🟠 The naira is expected to strengthen to an average of ₦1,400 per US dollar in 2026, supported by a more efficient foreign exchange market and increased capital inflows;
🟠 Foreign reserves are also expected to rise to around $51 billion.
This policy shift is part of broader economic reforms under President Bola Tinubu's administration, which has removed fuel subsidies and currency controls.
The bank notes that risks to its inflation target include potential increases in pre-election spending ahead of the 2027 polls.
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