PRICE STABILITY, DEVELOPMENT AND THE ROLE OF THE CBN
Price and financial stability remain the apex bank’s prime obligations, argues RISLANUDEEN MUHAMMAD Nigeria has spent the past three years absorbing one of the most compressed macroeconomic adjustments in its
The Central Bank of Nigeria (CBN) is tasked with ensuring monetary and price stability, which is crucial for the country's economic development. In the past three years, Nigeria has undergone significant macroeconomic adjustments, including the removal of petrol subsidies, the liberalisation of the foreign exchange market, and a tightening cycle at the CBN.
These changes have led to increased petrol prices, a depreciating naira, and higher borrowing costs, affecting households and businesses. However, inflation has been gradually decreasing, falling to 15.43% in July 2026 from a peak of 34% in 2024. The naira has also strengthened, reaching a record high of N1,346 to N1,349 per dollar in August 2026.
External reserves have also increased to $52.66 billion, its highest level in 17 years. While these macroeconomic improvements are significant, the real question is how the CBN's return to price stability will translate into broader access to credit, savings, and insurance for the Nigerian populace. The CBN Act of 2007 clearly outlines the bank's responsibilities, with price stability as the foundation for its other functions.
The next step for the CBN is to design its monetary policy to not only maintain price stability but also to foster inclusive growth by expanding the base of individuals and businesses that can access credit, save, and invest in the country's economic recovery.
Brief written by urgent.news from This Day's own syndicated text. Machine-written — may contain errors; check the original before relying on it.
