The Nigeria Governors’ Forum (NGF) has publicly backed the Central Bank of Nigeria’s (CBN) aggressive monetary policies, commending the apex bank’s sustained efforts to tame inflation, stabilize the naira, and rebuild confidence in the nation’s financial system.
In a communiqué released late Thursday, October 23, following its fifth meeting, the governors, led by Kwara State Governor AbdulRahman AbdulRazaq, acknowledged the CBN’s stabilization drive. The statement followed a briefing by Muhammad Sani Abdullahi, Deputy Governor (Economic Policy), on the CBN’s ongoing tightening measures, exchange rate unification, and banking sector recapitalization exercise.
The governors underscored the necessity of coordinated fiscal and monetary policies, calling such synergy “crucial” for sustained economic recovery and ensuring fiscal sustainability at the state level. The NGF’s endorsement is a significant vote of confidence in the CBN, which has utilized high interest rates to pull liquidity out of the system, despite the high cost of borrowing for businesses.
Persistent Price Pressure Hits Households
The NGF’s support comes as high inflation continues to put severe strain on Nigerian households, despite a recent official slowdown in the Consumer Price Index (CPI).
Official data from the National Bureau of Statistics (NBS) shows a recent easing of the annual headline inflation rate to 18.02 per cent in September 2025, down from 20.12 per cent in August. This marks the sixth consecutive month of deceleration and the first time the rate has dipped below 20 per cent in three years.
However, analysts caution that the relief is largely statistical rather than a practical easing of household pressure. A recent report by SBM Intelligence, titled the “Jollof Index,” noted that while the national average cost of preparing a pot of Jollof rice marginally decreased by 3.17 per cent in the third quarter of 2025 (June to September), the moderation was “non linear and fragile,” driven by seasonal harvests rather than structural improvements. The report classified the country’s situation as a “widening affordability crisis.”
This acute household pressure is driving significant changes in consumer behavior. A report by global research firm Nielsen on the impact of inflation showed that a growing number of Nigerian consumers are resorting to down trading, switching from premium or familiar national brands to cheaper private labels or generic alternatives to make their budgets stretch further.
