Market News

ABUJA, Oct. 26 (Reuters) — Nigeria aims to reduce inflation to single digits before the end of 2027, paving the way for significantly lower interest rates that could reduce borrowing costs and support economic growth, Finance Minister Taiwo Oyedele said on Monday.

“If you are growing at 4.43% and borrowing at close to 30%, imagine what is possible when you borrow at single-digit rates,” Oyedele said.

Nigeria’s headline inflation rate remains around 15%, while the benchmark interest rate stands at 23%, keeping cost-of-living pressures elevated just months before a national election.

Speaking at the Nigeria Economic Summit, Oyedele said the government’s reforms were already delivering benefits but that authorities wanted to accelerate progress so household incomes would rise faster than prices.

Lower inflation and interest rates would unlock investment and accelerate growth in Africa’s most populous country, he said.

Oyedele added that policymakers were open to adjusting the reforms where evidence showed measures were ineffective. However, he urged critics to engage constructively with policy details rather than rely on “emotion” or incomplete narratives.

Since taking office in 2023, President Bola Tinubu has scrapped fuel subsidies, devalued the naira and introduced reforms that have strengthened public finances, increased foreign reserves and improved investor confidence. However, the measures have also contributed to Nigeria’s worst cost-of-living crisis in decades.