Nigeria’s headline inflation has fallen dramatically to 15.38%, down from a peak of around 34% — a sharp cooling that has handed the Central Bank of Nigeria (CBN) room to ease monetary policy for the first time in years.
In a milestone move, the CBN cut its benchmark Monetary Policy Rate from 27.5% to 26.5% in May 2026, its first reduction in five years. The apex bank now supports a projected GDP growth rate of about 4.49% for 2026, up from 3.89% in 2025.
Officials have framed the numbers as evidence that the government’s reform agenda is beginning to bear fruit, with the State House describing 2026 as “the beginning of a more robust phase of economic growth.”
Still, the relief is uneven. Even as macro indicators improve, many households continue to feel the squeeze of high living costs, and critics argue that the benefits of disinflation have yet to reach ordinary Nigerians. Whether the softer rate environment translates into cheaper credit and real relief will be the story to watch through the rest of the year.
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