We Expect Inflation To Continue trending Downward -Cardoso

The Governor of Central Bank, Mr Olayemi Cardoso has disclosed that the Central Bank is expecting the inflation to continue to trend downward in the near term,supported by tight monetary conditions,a stable naira and increased food supply.

He made the remark at the ongoing Annual Meetings of the International Monetary Fund and the World Bank Group in Washington.While also reacting to the NBS recent report on inflation.

In a statement on Thursday, the CBN said it remains committed to strengthening the disinflation trend, supported by a combination of exchange rate stability, durable improvements in food supply, and continued moderation in petroleum product prices.

Part of the statement read,”Nigeria’s headline inflation rate fell for the sixth consecutive month in September,
easing to 18.02 percent, its lowest level in three years. according to new data
released by the National Bureau of Statistics (NBS). Core inflation slowed to 19.53
percent, while food inflation moderated to 16.87 percent over the same period.”

The CBN said the sustained decline marks a significant reversal from the inflationary peak of
34.19 percent in June 2024, reflecting the impact of the Central Bank of Nigeria’s
(CBN) decisive monetary policy actions to restore price stability and anchor
expectations.

In response to those pressures, the CBN raised its Monetary Policy Rate (MPR)
from 18.75 percent to 27.50 percent through a sustained tightening cycle, while
increasing the Cash Reserve Ratio (CRR) to 50 percent for commercial banks and
16 percent for merchant banks. At its September 2025 meeting, the Bank eased
slightly, lowering the MPR by 50 basis points to 27.00 percent and the CRR for
commercial banks to 45 percent, while maintaining a firm anti-inflationary stance.

“Monetary tightening was complemented by reforms in the foreign exchange
market, including exchange rate unification and enhanced transparency to
improve price discovery in the market. The naira has since stabilized, with the
spread between the official and Bureau de Change (BDC) rates narrowing to
below 2 percent. Improved liquidity in the FX market has helped reduce the pass
through imported inflation and reinforced price stability.

Foreign reserves remain above $43 billion, providing more than eleven months of
forward import cover, supported by sustained forex inflows.”the statement concluded