December 31, (THEWILL) — The Central Bank of Nigeria (CBN) has projected that Nigeria’s inflation rate will decline to 12.94 percent by 2026, pointing to gradual relief for households and businesses as current economic reforms take hold. The apex bank also expressed optimism about the outlook for Nigeria’s capital market, forecasting a bullish trend supported by improving investor confidence and policy stability.
In its latest economic outlook, the CBN said a combination of fiscal and monetary measures is expected to ease inflationary pressures over the medium term while supporting sustainable economic growth. A slowdown in inflation, the bank noted, could strengthen purchasing power and encourage investment across key sectors of the economy.
The positive outlook for the capital market is anchored on ongoing financial-sector reforms aimed at improving liquidity, transparency, and market efficiency. According to the CBN, these measures are expected to support stronger performance in both the equity and fixed-income segments, attracting increased participation from domestic and foreign investors.
While economists have welcomed the projections as a sign of improving macroeconomic stability, they have cautioned that external risks, such as global economic uncertainty, oil price volatility, and domestic supply-side challenges, could affect the outcomes. Inflationary pressures, particularly from food and energy costs, remain a key concern.
The CBN stated that sustaining reforms, strengthening fiscal discipline, and ensuring effective policy transmission will be crucial to achieving the projected decline in inflation and unlocking the full potential of the capital market.
Ogochukwu Onwaeze
