The Central Bank of Nigeria has reiterated its drive to strengthen collaboration with the academic and research community as the country advances toward adopting a full inflation-targeting monetary policy framework.
This was disclosed in Abuja on Monday by the Deputy Governor, Economic Policy, Muhammad Abdullahi, during a strategic engagement with members of the Nigerian Economic Society and other experts.
He described the interaction as timely, noting that it aligns with Nigeria’s broader economic reform agenda and the need for inclusive policy dialogue.
Abdullahi explained that the shift toward an inflation-targeting system represents a move to a more transparent, forward-looking, and rules-based monetary approach focused on long-term price stability.
He said the framework would serve as a key anchor for managing expectations, improving policy credibility, and reducing the effects of external and domestic shocks on the economy.
According to him, stabilising inflation expectations can help reduce risk, encourage long-term investments, and enable policymakers to better navigate short-term disruptions.
He added that in the face of global uncertainties such as geopolitical tensions and fluctuating energy prices, a credible monetary framework remains essential to strengthening economic resilience.
Abdullahi outlined several reforms already implemented to support the transition, including the adoption of conventional monetary tools, reduced involvement in quasi-fiscal activities, and efforts to enhance institutional independence.
He also pointed to foreign exchange market reforms such as rate unification and the introduction of electronic trading systems, which have helped improve transparency and reduce volatility.
Further measures, including banking sector recapitalisation and tighter prudential supervision, were said to have contributed to overall financial system stability.
He noted that improved coordination with fiscal authorities and clearer communication strategies have also enhanced policy coherence.
Abdullahi stated that these reforms are beginning to yield positive results, citing a decline in headline inflation from 34.8 percent in late 2024 to 15.1 percent by early 2026.
He attributed the progress to sustained policy tightening and stronger discipline in monetary management.
He expressed optimism that inflation will continue to trend downward toward a single-digit range of 6–9 percent in the medium term, provided there are no major external disruptions.
Also speaking, Victor Oboh reaffirmed the bank’s commitment to deepening collaboration with the Nigerian Economic Society to strengthen policy effectiveness.
Oboh emphasised that the success of an inflation-targeting framework depends not only on technical capacity but also on public trust and effective communication.
He noted that academics and researchers play a crucial role in shaping economic narratives, guiding expectations, and supporting evidence-based policymaking.
The President and Chairman of the Nigerian Economic Society, Baba Musa, commended the Central Bank for its reform-driven approach and openness to engagement with the academic community.
He pledged continued support from the society in advancing macroeconomic stability efforts, stressing the importance of a credible and dependable central bank in achieving national economic objectives.
The session concluded with renewed commitments from both institutions to sustain collaboration in support of Nigeria’s monetary policy goals.