By Stephen Simon
The Federal Government has set a target of reducing Nigeria’s inflation rate to single digits before the end of 2027, a move expected to create room for lower interest rates and more affordable borrowing.
Finance Minister Taiwo Oyedele announced the target on Monday, linking price stability to improved access to credit and stronger economic growth.
Reuters reported that interest rates in Nigeria were close to 30 per cent, making borrowing expensive for businesses and individuals.
Oyedele argued that bringing inflation under control could help unlock the country’s economic potential, particularly by reducing financing costs for companies seeking to expand production and create jobs.
Nigeria has faced persistent cost-of-living pressures following major economic reforms, including the removal of the petrol subsidy and changes to the foreign-exchange system.
High prices have continued to affect household purchasing power, while businesses face elevated operating and financing costs.
However, the government’s single-digit inflation objective remains a target rather than an achieved outcome. Its success will depend on developments in food prices, energy costs, exchange rates and monetary policy.
A sustained decline in inflation could improve consumers’ purchasing power and strengthen business confidence, but the impact will depend on whether lower inflation translates into more affordable goods, services and credit.
Source: Reuters report.
