The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has maintained the benchmark interest rate at 27 per cent, extending its pause on further monetary tightening.
CBN Governor Olayemi Cardoso announced the decision on Tuesday following the conclusion of the committee’s 303rd meeting in Abuja. He explained that the majority of MPC members agreed that holding the current rate was the most appropriate step given prevailing economic conditions.
“The Committee decided by a majority vote to maintain the monetary policy stance,” Cardoso said, noting that members did not consider the economic environment stable enough to justify another rate cut.
Tuesday’s resolution follows a modest 50-basis-point reduction in September 2025, which was the first and only downward adjustment since the current monetary tightening cycle began under the present CBN leadership. With this decision, the MPC has kept the Monetary Policy Rate unchanged for the fourth consecutive time this year.
In 2024, the MPC raised interest rates six times in response to rising inflation and pressures on the naira, marking one of the most aggressive tightening phases in recent years. Though inflation has shown signs of easing, policymakers signalled a cautious approach to ensure the durability of economic improvements.
All 12 MPC members were present for Tuesday’s meeting and voted unanimously to maintain the rates. Cardoso stated: “The committee decided to maintain the Monetary Policy Rate at 27 per cent, with the standing facility corridor adjusted around MPR +50 and -450 basis points.”
Other monetary measures were also retained, including the Cash Reserve Ratio (CRR) at 45 per cent for merchant banks and 75 per cent for non-TSA public sector deposits, while the liquidity ratio remains at 30 per cent.
Cardoso noted that the Committee’s decision reflects the low and stable inflation currently recorded in the country, underscoring a cautious but steady approach to managing Nigeria’s monetary policy.