CBN’s Cardoso Flags Inflation as Nigeria’s Biggest Economic Threat

Central Bank of Nigeria (CBN) Governor, Olayemi Cardoso, has identified inflation as the greatest threat to Nigerians’ economic welfare, pledging that the CBN will work toward reducing it to single digits over the medium term.

Speaking after the 2025 IMF and World Bank Spring Meetings in Washington, D.C., Cardoso emphasized the urgent need to stabilize household incomes and ease the rising cost of living.

“Inflation remains the most disruptive force against the economic welfare of Nigerians. Our focus is to bring it down to single digits over the medium term,” he stated.

Nigeria’s inflation rate climbed to 24.23% in March 2025, up from 23.18% in February, according to the National Bureau of Statistics (NBS). The rise, driven by higher food and non-food prices, has worsened living conditions for millions of Nigerians.

The IMF projects inflation to average 26.5% in 2025, following the recent rebasing of the Consumer Price Index (CPI). While this is an improvement from 33.2% in 2024, inflation is forecast to spike again to 37.0% by 2026, highlighting the fragile nature of the economy.

Despite these pressures, Cardoso noted a growing wave of investor confidence in Nigeria’s reforms, referencing a recent investment forum at the Nasdaq Market Site in New York, which drew significant interest from global investors and the diaspora.

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Minister of Finance and Coordinating Minister of the Economy, Wale Edun, echoed these views at the meetings, outlining the government’s goal of achieving 7% economic growth through investments in critical infrastructure like digital connectivity and fibre optic networks.

Edun stressed the need to mobilize domestic revenue and encourage private sector participation to drive sustainable growth and job creation.

“By stabilizing the economy and boosting private sector activity, we are creating sustainable jobs for young Nigerians and promoting inclusive growth,” Edun said.

He reaffirmed the government’s commitment to fiscal discipline and reform, which has received support from international partners.

“Despite global headwinds, Nigeria is positioned for resilient and inclusive growth,” Edun added.

Highlighting the importance of flexibility, Edun noted, “A budget is a statement of intent and must be regularly updated to reflect changing realities.”

As Nigeria works through its economic hurdles, authorities say coordinated efforts between the CBN, the government, and global partners are key to reducing inflation, driving investment, and ensuring long-term prosperity.