Michael O. Ojo

Document Type

Occasional Paper

Publication Title

Transition to Full-Fledged Inflation Targeting: a proposed programme for implementation by the Central Bank of Nigeria


This paper attempts to provide an input into addressing these issues, especially as regards resolving the technical, administrative and practical problems for a transition to inflation targeting as a framework for monetary policy in Nigeria. Specifically, the main purpose of this paper is to outline proposals that would permit the CBN transit successfully to full-fledged inflation targeting (FFIT) for its monetary policy operations. Following the introduction (Section 1), the paper is organized as follows: Section 2 examines the conceptual framework, focusing on the essential elements and modalities of different monetary policy frameworks. Section 3 contains an overview of the experiences of the present IT economies, including the origins, design and operations of their frameworks, and a general assessment of their performance. Section 4 reviews the evolution of monetary policy frameworks in Nigeria, concluding with an assessment of the prospects for a shift to IT. Section 5 contains a detailed analysis of the proposals for a transition to an IT framework in Nigeria with a specific focus on the technical aspects, roles of various institutions, as well as how to resolve critical policy decisions and address identified risks. Section 6 contains the summary, conclusion and policy recommendations which put forward an outline of identified activities for transition to a FFIT framework in Nigeria

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