"We don't want to get to that point of hyperinflation," he said.
To safeguard Nigeria's economic stability, the Central Bank of Nigeria (CBN) has pledged to take all necessary measures to prevent hyperinflation while intensifying its inflation management strategies.
The Acting Director of the Banking Supervision Department of the CBN, Adetona Adedeji, disclosed this on Monday at the Nigerian Economic Summit (NES) in Abuja.
The commitment comes amid rising concerns about the impact of inflation on consumer confidence and overall economic growth.
The official underscored the central bank's focus on inflation targeting, which is pivotal to achieving price stability in the Nigerian economy.
"We don't want to get to that point of hyperinflation," he stated, highlighting the urgency of the situation.
He said the CBN's strategy involves carefully monitoring inflation trends and implementing robust monetary policies to counteract potential price surges.
With inflation rates continuing to pose challenges, the CBN says it has adopted a proactive stance.
He said the bank has signalled its readiness to adjust the monetary policy rate as necessary to ensure that inflation is kept within manageable limits.
"During the last Monetary Policy Committee, a lot of analysts were expecting that we are going to hold or return, but the CBN management just said we're not doing things by the rule of thought.
"We speak to statistics. We speak to information that is reliable by the time we do our analysis and management, say, No, it's not yet time to hold or to come down. And there is a serious one, not because some developed nations are coming down on inflation.
"I mean, they're holding in some regions, and some are coming down. But when we look at our statistics, it's not yet for us to come down so that we don't lose the game we have achieved so far," he said.
Mr Adedeji further emphasised the importance of collaboration between the CBN and various stakeholders, including the manufacturing sector, in navigating the complexities of the current economic landscape.
"We are committed to working closely with all sectors to ensure that we collectively avert the dangers of hyperinflation," he said.
During the last Monetary Policy Committee (MPC) meeting, the CBN increased its benchmark lending rate from 26.75 per cent to 27.25 per cent. This decision was made to promote a sustained decline in inflation levels.
Sign up for free AllAfrica Newsletters
Get the latest in African news delivered straight to your inbox
"Following a review of the upside risks to price developments and the downside risks to the recovery of output growth, the committee chose to tighten policy further to safeguard the gains already achieved in moderating inflationary pressures," CBN Governor Olayemi Cardoso said.
According to the National Bureau of Statistics (NBS), Nigeria's headline inflation rate fell to 32.15 per cent in August 2024, compared to 33.40 per cent in July, showing a reduction of 1.25 percentage points.
Banking system innovation
Mr Adedeji also emphasised that banking innovations should focus on enhancing customer experience and providing seamless services.
He noted that a lot of innovation is happening in the banking industry globally, and Nigeria cannot be left behind.
He stressed that for banks to be proud of these innovations, they need to see a very robust risk management system and strong cybersecurity measures in place.
This is crucial as the banking industry is working to increase financial inclusion and bring more people into the formal banking system.
With a growing emphasis on electronic channels, he warned, "Any bank that is not competitive in the area of e-channels has itself to blame."
As financial institutions increasingly integrate artificial intelligence and cloud technologies into their operations, the CBN urged banks to implement robust risk management frameworks to protect both their systems and customers.
This is crucial as the banking industry is working to increase financial inclusion and bring more people into the formal banking system, he said.
