Nigeria Eyes Single-Digit Inflation by End-2027 to Cut Interest Rates

Nigeria plans to bring inflation down to single digits before the end of 2027, a move that would allow significantly lower interest rates and cut borrowing costs, Finance Minister Taiwo Oyedele said on Monday, Oct. 26.

Oyedele spoke at the Nigeria Economic Summit. He said the government wants to accelerate reforms so household incomes rise faster than prices.

Why the target matters

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

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

He said lower inflation and interest rates would unlock investment and accelerate growth in Africa’s most populous country.

Reform stance

Oyedele said the government’s reforms were already delivering benefits. He said authorities wanted to speed up progress. He added that policymakers were open to adjusting the reforms where evidence showed measures were ineffective.

He urged critics to engage constructively with policy details rather than rely on “emotion” or incomplete narratives.

Tinubu’s reforms

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.

The measures have also contributed to Nigeria’s worst cost-of-living crisis in decades.

The target matters for Nigerian businesses and consumers because lower inflation and interest rates could reduce borrowing costs and support economic growth. The government is betting that faster progress on reforms will ease those pressures before the end of 2027.