Single-digit inflation will save Nigeria $10 billion — Taiwo Oyedele

Finance Minister Taiwo Oyedele claimed that achieving single-digit inflation in Nigeria could potentially save the government over $10 billion. Speaking at the IMF meetings in Thailand, Oyedele emphasized the importance of reduced inflation and interest rates in easing pressure on public finances. He addressed the need for improved coordination between monetary and fiscal authorities, as the Central Bank of Nigeria (CBN) prepares to transition to inflation targeting as part of its reform program.

Oyedele highlighted the CBN's successful management of the foreign exchange environment, which has contributed to the stabilization and appreciation of the naira. The minister also pointed out that lower inflation would bring interest rates down to similar levels, thereby lowering the fiscal burden on the government. Nigeria's headline inflation rate slightly decreased to 15.39% in August 2026 from 15.43% in July, indicating a third consecutive month of disinflation.

However, household surveys revealed that 77.2% of Nigerian households still perceived inflation as high in September 2026, up from 67.2% in August. This suggests that despite the official inflation rate moderation, many households continue to face financial challenges due to rising prices. The IMF upgraded Nigeria's economic growth forecast for 2026 to 4.2% and projected growth of 4.3% for 2027 in its World Economic Outlook report titled Resilience Under Strain, Urgent Choices, published in Bangkok, Thailand.

The World Bank also raised its growth forecast for Nigeria to 4.3% in 2026 and 4.4% for both 2027 and 2028.