The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 percent, maintaining its current monetary policy stance amid ongoing efforts to stabilise the economy and control inflationary pressures.
The apex bank also retained all other key monetary parameters following the conclusion of the 305th meeting of the Monetary Policy Committee (MPC) held in Abuja. The Standing Lending Facility and Standing Deposit Facility corridor around the MPR were maintained at +500 and -450 basis points respectively.
In addition, the Cash Reserve Ratio (CRR) was left unchanged at 45 percent for Deposit Money Banks, 16 percent for Merchant Banks, and 75 percent for public sector deposits outside the Treasury Single Account framework.
The MPC explained that the decision to retain the rates was based on a careful assessment of both domestic and global economic conditions. Members of the committee noted that although inflation had recorded slight increases in recent months, the rise was largely driven by temporary external factors, particularly global geopolitical tensions and rising energy costs.
According to the committee, the current monetary measures already in place are considered strong enough to support a gradual return to price stability and moderate inflation over time. The committee stressed the need for caution in order to sustain investor confidence, protect the value of the naira, and maintain macroeconomic stability.
The MPC also observed that recent tensions in the Middle East had contributed to higher global energy prices, increased transportation costs, and pressure on supply chains. However, it noted that the impact on Nigeria’s economy had remained relatively limited due to ongoing reforms introduced by monetary and fiscal authorities.
The committee expressed confidence that improvements in food supply, exchange rate stability, and continued policy coordination between government institutions would help support economic growth and ease inflationary pressure in the coming months.
Meanwhile, Nigeria’s foreign reserves were said to have risen significantly, approaching the $50 billion mark. The development is expected to strengthen the country’s external position, improve investor confidence, and provide stronger support for import financing and exchange rate stability.
The CBN also maintained that the foreign exchange market had become more stable and liquid, reducing the need for direct interventions by the apex bank. Authorities stated that the market is gradually deepening, allowing demand and supply dynamics to operate more efficiently while the bank focuses mainly on meeting specific government-related obligations.
On the banking sector recapitalisation exercise, the apex bank assured that it would continue to monitor the financial system closely to ensure stability throughout the process. Banks facing temporary regulatory or legal challenges in meeting the new capital requirements are expected to receive limited flexibility, provided such measures do not threaten the overall stability of the financial system.
The MPC reaffirmed its commitment to policies aimed at achieving lower inflation, exchange rate stability, stronger investor confidence, and sustainable economic growth.
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