FG Targets Single-Digit Inflation Before End of 2027

By Adedapo Adesanya

The federal government aims to reduce inflation to single-digit levels before the end of 2027, paving the way for lower interest rates to reduce borrowing costs and support economic growth.

The Minister of Finance, Mr Taiwo Oyedele, disclosed this on Monday at the Nigeria Economic Summit in Abuja.

The Minister argued that lower borrowing costs could unlock investment and significantly improve the country’s growth prospects.

“If you are growing at 4.43 per cent and borrowing at close to 30 per cent, imagine what is possible when you borrow at single-digit rates,” the minister said.

Nigeria’s headline inflation rate eased to 14.63 per cent in September 2026, down from 15.39 per cent in August 2026, marking the lowest rate since October 2020, while the Central Bank of Nigeria’s benchmark interest rate was cut by 350 basis points from 26.50 per cent to 23 per cent by the Monetary Policy Committee (MPC) last month.

Despite these developments, market analysts note the levels are still sustaining pressure on household purchasing power and businesses’ financing costs ahead of the country’s next elections in January 2027.

Mr Oyedele said the government’s ongoing economic reforms were already delivering benefits but added that authorities wanted to accelerate progress to ensure household incomes grew faster than prices.

He said lower inflation and interest rates would encourage investment and accelerate economic growth in Africa’s most populous country.

The minister also said policymakers remained open to adjusting the reforms where evidence showed that particular measures were ineffective.

However, he urged critics to engage constructively with policy details rather than rely on what he described as emotion or incomplete narratives.

Business Post reports that Mr Oyedele, in recent weeks, has had to put out a series of clarifications following what he considered misinterpretation of his words by the media.

Last week, he dismissed reports that the federal government plans to introduce a fuel tax when the economy stabilises.