Economic experts have urged the Central Bank of Nigeria (CBN) to maintain monetary policy stability after headline inflation eased slightly to 15.91 per cent in June 2026. The latest figure from the National Bureau of Statistics (NBS) marks a 0.02 percentage point decline from 15.93 per cent in May and the first drop since February. Experts believe monetary policy stability remains vital to supporting investor confidence, economic growth and long-term price stability.
Speaking in Abuja after the 306th Monetary Policy Committee (MPC) meeting held on July 20 and 21, 2026, the experts reacted to the CBN’s decision to retain the Monetary Policy Rate (MPR) at 26.50 per cent for a second consecutive meeting.
Joseph Ukwu, a Lagos-based economist, said the decision reflected the CBN’s careful assessment of current economic conditions but stressed that more efforts were needed to ensure monetary policy stability that supports inclusive growth.
“Retaining the interest rate at 26.5 per cent for the second time in two months shows that the CBN is also on its toes, given the conditions of some critical indices, but it has to do more to ensure monetary rate stability that will enable inclusive growth,” he said.
Ukwu described the slight decline in inflation as encouraging but warned that the improvement remained modest.
“Yes, headline inflation eased by 0.02 percentage points from 15.93 per cent to 15.91 per cent in one month between May and June 2026. You see that the inflation drop is small, which means all is not well yet,” he stated.
He also noted that the conflict between Iran and the United States had created uncertainty in the global energy market, which could affect Nigeria’s economy.
Another economist, Eze Onyekpere, said high interest rates continued to put pressure on small businesses. He called on the CBN to fully implement initiatives such as the Nigerian Overnight Financing Rate (NOFR) to strengthen monetary policy stability and encourage more investment.
“When you have a predictable interest rate, it encourages investors’ participation in the economy,” Onyekpere said.
In a communiqué signed by CBN Governor Olayemi Cardoso, the MPC said it maintained its current policy stance after assessing both domestic and global economic risks.
“Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due mainly to the renewed hostilities in the Middle East. In view of the evolving developments, maintaining a cautious monetary policy stance remains appropriate,” the communique stated.
The committee said rising global energy prices could increase domestic inflation but noted that Nigeria’s economy had remained resilient due to earlier fiscal and monetary reforms.
“Maintaining the current monetary policy stance will provide an opportunity to closely monitor incoming data and assess the trajectory of inflation to guide future policy decisions,” Cardoso said.
The MPC also welcomed the Federal Government’s commitment to stronger coordination between fiscal and monetary authorities and praised efforts to improve crude oil production while encouraging reforms in the solid minerals sector.
According to the CBN, food inflation increased to 17.52 per cent in June from 16.96 per cent in May due to supply challenges, while core inflation fell to 15.92 per cent from 16.82 per cent, supported by exchange rate stability. The 12-month average inflation rate also declined to 17.63 per cent, marking the sixth consecutive month of moderation.
The bank added that real GDP grew by 3.89 per cent in the first quarter of 2026, while gross external reserves rose to $52.52 billion as of July 17, 2026. Cardoso expressed confidence that stronger crude oil production, policy reforms, foreign exchange stability and improved food supply would support growth and help inflation ease further.
Do you think the CBN’s cautious approach will be enough to keep inflation under control while supporting economic growth?
