I don't much like that phrasing of the problem (though it is quite standard), since in fact we end up concluding that $G/Z(G)$ is trivial; which, granted, is cyclic, but still...
Generally, I prefer the phrasing:
If $N\leq Z(G)$ and $G/N$ is cyclic, then $G$ is abelian.
Here's a stronger conclusion, due to Baer:
Theorem. (R. Baer, 1938) Let $G$ be a finitely generated abelian group,
$$G \cong C_{a_1}\oplus\cdots \oplus C_{a_k},$$
where $C_r$ is the cyclic group of order $r$, infinite cyclic with $r=0$, and $1\lt a_1|a_2|\cdots|a_k$. Then $G$ is isomorphic to $H/Z(H)$ for some $H$ if and only if $k=0$, or $k\geq 2$ and $a_{k-1}=a_k$.
(In fact, Baer characterized all abelian groups that can be written as direct sums of cyclic groups and are central quotients, not just the finitely generated ones, and went even further, describing exactly when, given abelian groups $G$ and $K$ that are direct sums of cyclic groups, you can find a group $H$ with $H/Z(H)\cong G$ and $Z(H)\cong K$. See this question for the citation and other related results.)