Reforms bolster economy amid March inflation uptick

Nigeria's economy is demonstrating increasing resilience amidst global headwinds, with ongoing reforms cushioning external shocks and sustaining growth momentum. While inflation saw a marginal increase to 15.38% in March, up from 15.06% in February, largely due to global pressures stemming from the Middle East crisis, the Central Bank of Nigeria (CBN) remains steadfast in its commitment to achieving a single-digit inflation rate.

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We are not relenting on continuing to build resilience and also to stay the course with respect to something we have constantly been talking about, and that is bringing down inflation to single digits. In spite of all that is going on, we will stay that course.

CBN Governor Olayemi Cardoso expressed confidence that the country is on track to meet this target. He highlighted that the economy's ability to withstand global shocks is a testament to the positive outcomes of the financial sector reforms spearheaded by the apex bank, alongside broader economic strengthening efforts. These reforms, implemented over the past two years, have bolstered economic fundamentals, enhancing Nigeria's capacity to absorb shocks and navigate challenging international conditions. There is a growing consensus, both domestically and internationally, that these reforms have significantly boosted investor confidence.

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The economy’s resilience and its ability to withstand global shocks reflect the positive outcomes of ongoing financial sector reforms spearheaded by the apex bank, as well as broader efforts aimed at strengthening the economy.

Cardoso noted at the recent IMF/World Bank Spring Meetings that the spillover effects from the Middle East crisis, which contributed to the modest inflation rise in March, have been relatively contained. This demonstrates the effectiveness of ongoing reforms, including exchange rate stabilization, strengthening foreign reserves, and a more robust monetary policy framework. "We are not relenting on continuing to build resilience and also to stay the course with respect to something we have constantly been talking about, and that is bringing down inflation to single digits," Cardoso stated, underscoring the CBN's unwavering focus.

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He explained that the economy’s capacity to manage these pressures demonstrates the effectiveness of ongoing reforms, including exchange rate stabilisation, stronger foreign reserves, and a more robust monetary policy framework.

Data from the National Bureau of Statistics (NBS) confirmed the slight increase in headline inflation for March 2026, marking the first rise in 12 months after a period of steady decline. However, the overall narrative remains one of progress and enhanced economic stability. The reforms are not only aimed at controlling inflation but also at creating a more predictable and attractive environment for investment, positioning Nigeria to better manage future economic challenges and capitalize on opportunities.

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The Headline inflation rate rose to 15.38 per cent, up from 15.06 per cent in February 2026 and stood 27.35 per cent in the same month of the prec