The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has retained the monetary policy rate (MPR), which benchmarks interest rates in the country, at 27.5 percent.
Olayemi Cardoso, governor of the apex bank, announced the rate adjustment on Tuesday at the end of the committee’s 301st meeting in Abuja.
The MPR is the baseline interest rate in an economy, every other interest rate used within the economy is built on it.
The decision is the third time the regulator has retained the MPR in 2025, following similar calls in February and May.
Advertisement
The MPC’s position comes after Nigeria’s inflation rate dropped to 22.22 percent despite a slight surge in food prices.
Speaking at the media briefing, Cardoso said the committee members voted to retain the MPR at 27.50 percent, adjust the asymmetric corridor to +500 and -100 basis points around the MPR.
The governor said the committee also retained the cash reserve ratio (CRR) at 50 percent, and the liquidity ratio at 30 percent.
Advertisement
Cardoso said the MPC retained the rate to “sustain the momentum of disinflation and sufficiently contain price pressure”.
He added that the MPC would “continue to undertake rigorous assessment of economic conditions, price developments and outlook to inform future policy decisions”.
“The continued global uncertainties associated with the tariff wars and geopolitical tensions could further exacerbate supply chain disruption and exert pressure on the prices of imported items,” the CBN boss said.
“Members also noted the continued stability in the banking system, evidenced by the stable financial soundness indicators, which would further be supported by the ongoing banking recapitalisation exercise.”
Advertisement
The CBN governor acknowledged the decline in headline inflation to 22.22 percent in June 2025, from 22.97 percent in May, marking the third consecutive month of moderation.
He attributed the development to “the moderation in energy prices and stability in the foreign exchange market”.
However, Cardoso flagged fresh concerns.
“Despite these positive developments, members observed the uptick in month-on-month headline inflation, suggesting the persistence of underlying price pressures,” the economist said.
Advertisement
He also warned that “continued global uncertainties associated with tariff wars and geopolitical tensions could further exacerbate supply chain disruption and exert pressure on the prices of imported items’.
‘GROSS EXTERNAL RESERVES NOW AT $40.1 BILLION’
Advertisement
Cardoso also cited a “sustained stability in the foreign exchange market,” noting increased capital inflows, improved crude oil production, rising non-oil exports, and reduced imports.
He said gross external reserves rose to $40.11 billion as of July 18, providing about 9.5 months of import cover.
Advertisement
“The external sector also remains stable and resilient despite persistent uncertainties in the global macroeconomic environment,” he added.
Looking ahead, Cardoso said staff projections indicate that inflation will continue to decline in the coming months, supported by tight monetary policy, stable exchange rates, declining PMS prices, and the start of the harvest season.
Advertisement
“Given the persistent uncertainty in the policy environment and underlying price pressures, monetary policy will need to maintain its current stance until risks to inflation recede sufficiently,” he said.
The CBN chief Cardoso reaffirmed the MPC’s commitment to “the bank’s price stability mandate” and promised it would “take appropriate measures to foster stability and confidence in the economy”.
The next MPC meeting is scheduled for September 22 and September 23.
