Nigeria’s government wants inflation in single digits before the end of 2027, while reported increases in bank lending rates underscore the gap between central bank policy and borrowing costs.
Finance Minister and Coordinating Minister of the Economy Taiwo Oyedele set the target at the 32nd Nigerian Economic Summit in Abuja on Monday, Oct. 26, BusinessDay and Nairametrics reported. He linked lower inflation with the prospect of cheaper borrowing and faster growth. Oyedele had previously identified single-digit inflation and interest rates by 2027 as policy objectives, as noted in EconoTimes’ coverage of the government’s 90-day plan.
The Central Bank of Nigeria (CBN) cut its Monetary Policy Rate from 26.5% to 23% at its Sept. 21-22 meeting. BusinessDay and ThisDay, citing CBN money-market indicators, reported that the average maximum lending rate rose to 32.62% in September from 29.20% in August. They also reported the average prime lending rate increased to 19.04% from 17.86%. ThisDay reported that the prime rate had previously reached 19.66% in November 2009 and fallen to 11.13% in March 2021.
The National Bureau of Statistics (NBS) reported annual headline inflation of 14.63% in September, down from 15.39% in August. Annual food inflation was 19.59%, slightly higher than August’s 19.57%.
The International Monetary Fund’s June analysis found that policy changes pass through unevenly to Nigerian borrowing rates. It said Treasury bill and lending rates rose by 175 to 180 basis points on impact after a 100-basis-point policy increase, while an equivalent cut was followed by declines of 25 to 30 basis points. The IMF called this a “rockets-and-feathers” pattern and cited credit-risk premiums, liquidity imbalances and administrative pressures as factors affecting bank loan pricing.
The NBS said real GDP grew 4.43% year over year in the second quarter of 2026. BusinessDay quoted Oyedele saying, “imagine what is possible when you borrow at single-digit rates.” Available reports gave a deadline of before the end of 2027 but no interim inflation milestones; the remarks have not been verified against an official transcript or recording.
