he Central Bank of Nigeria (CBN) has decided to keep the Monetary Policy Rate (MPR) steady at 27.5%, as it navigates through global economic uncertainties and domestic inflationary pressures.
Governor Olayemi Cardoso made the announcement following the 300th Monetary Policy Committee (MPC) meeting held in Abuja. According to him, the committee voted unanimously to maintain key monetary indicators, including the cash reserve ratio (CRR) at 50% for commercial banks and 16% for merchant banks, while the liquidity ratio remains at 30%.
The decision to hold the interest rate was influenced by recent improvements in the economy, such as:
- A narrowing gap between official and parallel foreign exchange markets.
- A stable foreign reserves position.
- Decreasing prices of Premium Motor Spirit (PMS).
- Ongoing efforts to stabilize food prices, aided by increased security in farming areas and government support for agriculture.
Despite these gains, the MPC acknowledged persistent inflation threats, particularly from rising electricity tariffs, foreign exchange demand, and structural inefficiencies.
Governor Cardoso urged government agencies to boost non-oil export revenues and support local refining efforts—specifically mentioning the Dangote Refinery—to strengthen the country’s external earnings.
However, the committee expressed concern over falling global oil prices, which could pose serious risks to the implementation of Nigeria’s 2025 national budget.
