Central Bank of Nigeria manages stability and growth amid falling inflation

Nigeria is experiencing significant shifts in its macroeconomic landscape as of mid-2026. Headline inflation has declined to 15.91 percent, with core inflation at 15.92 percent, although food inflation remains elevated at 17.52 percent.

The foreign exchange market has stabilized, with the official rate near ₦1,380 to the dollar and the gap between official and parallel markets falling below two percent. Additionally, external reserves have reached a seventeen-year high, surpassing $52 billion, supported by a surge in official-channel remittances.

While restrictive monetary policies and foreign exchange reforms have cooled broad money growth from over 56 percent in 2024 to under 14 percent, the Central Bank of Nigeria faces a new challenge. The Monetary Policy Committee must now balance the mandate of price stability with the need to foster economic growth through accessible credit for investment, productivity, and employment.