Economic and Financial Review


Central Bank of Nigeria


Inflation Targeting, Nigeria, Monetary Policy


This article examines inflation with reference to Nigeria. As an emerging market environment. Part one outlines briefly the underlying mechanisms of inflation-management and general approaches to inflation targeting. Part two focuses on issues that specifically relate to inflation targeting (IT) in emerging markets, including the possible macroeconomic impact of the transition process. Part three considers the sequence and timing of the transition to IT in Nigeria, on the shift in exchange rate management required to achieve long-term price stability. Additionally, Nigeria-specific challenges are also addressed. The paper concludes by noting that both the time frame and coordination for a successful transition will be considerable, and that the Financial Sector Strategy 2020 will be the critical vehicle for achieving this.

Author Bio

Dr Mike Hugman is a staff of Standard Chartered Bank Plc. (Nigeria).

Publication Title

CBN Economic and Financial Review





Recommended Citation

Hugman, M. (2007). Towards Inflation Targeting Framework for Monetary Policy in Nigeria: the Challenges for Central Bank of Nigeria. CBN Economic and Financial Review. 45(4), 165-188.



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