Nigeria Targets Single-digit Inflation by End of 2027

Nigeria aims to reduce inflation to single digits before the end of 2027, a move officials say could enable lower interest rates, cheaper borrowing, and stronger economic growth. Finance Minister Taiwo Oyedele, who outlined the target recently, argued that businesses and households would benefit significantly if borrowing costs fell from current levels. Nigeria’s economy is growing at 4.43%, but its benchmark interest rate stands at 23%, while inflation remains around 15%. Oyedele said the government wants household incomes to increase faster than prices, building on reforms introduced since President Bola Tinubu took office in 2023. These forms include scrapping fuel subsidies, devaluing the naira, and implementing measures that have strengthened public finances, foreign reserves, and investor confidence. However, the policies have also intensified the country’s cost-of-living crisis.