Achieving single-digit inflation in Nigeria could save the government more than $10 billion, according to Finance Minister Taiwo Oyedele, who said lower inflation and interest rates would ease pressure on public finances.
Oyedele made the remarks on the sidelines of the IMF meetings in Thailand, highlighting the need for closer coordination between monetary and fiscal authorities as the Central Bank of Nigeria (CBN) prepares to make inflation targeting the next phase of its reform programme.
He also said the CBN’s management of the foreign exchange environment had helped stabilise the naira and support its appreciation.
Inflation targeting takes centre stage
Oyedele said collaboration between monetary and fiscal authorities had become increasingly important as the CBN moves towards inflation targeting.
He said bringing inflation down to single digits would help create the conditions for interest rates to fall to similar levels, reducing the government’s fiscal burden.
- “We are enhancing our collaboration between monetary and fiscal authorities. And already we are aware that the monetary authorities are piloting from monetary to inflation targeting, which means our collaboration is now even more important than it has ever been,” Oyedele said.
- “From the fiscal side, whatever we need to bring inflation to a single digit, thereby creating the conditions for interest rates to also be single digit, will save the fiscal side as of 2026 numbers more than US$10 billion.”
- “This is a top priority for us,” he added.
The minister also credited the CBN’s management of the foreign exchange market with helping to improve currency stability.
- “The good thing is, because of the way the central bank has been able to help us manage the FX environment generally, we’ve seen the naira not only being stable but steadily appreciating,” he said.
Inflation eases as households feel pressure
Nigeria’s headline inflation rate eased marginally to 15.39% in August 2026 from 15.43% in July, extending the disinflation trend for a third consecutive month.
However, household perceptions indicate that high prices remain a concern despite the moderation in the official inflation rate.
According to a CBN survey reported by Nairametrics, the proportion of Nigerian households that perceived inflation as high rose to 77.2% in September 2026, from 67.2% in August.
Earlier, Nairametrics reported that 68.4% of Nigerians earning below N70,000 perceived inflation as high in August, the highest share among the income categories surveyed by the CBN.
The figures highlight the continued pressure households face from prices, even as the headline inflation rate moderates.
IMF raises Nigeria’s growth forecast
The International Monetary Fund (IMF) raised Nigeria’s 2026 economic growth forecast to 4.2% and projected growth of 4.3% in 2027.
The projections were published in the Fund’s 2026 World Economic Outlook, titled Resilience Under Strain, Urgent Choices, presented in Bangkok, Thailand.
The World Bank also raised its forecast for Nigeria’s 2026 growth to 4.3%, from growth of 4.0% in 2025. It projected annual growth of 4.4% in both 2027 and 2028.