The Central Bank of Nigeria (CBN) held its final Monetary Policy Committee (MPC) meeting for 2025 on 24–25 November, amid expectations of further easing of the Monetary Policy Rate (MPR) to stimulate economic growth.
At its September meeting, the MPC reduced the MPR from 27.50 % to 27.00 % and narrowed the rate corridor to ±250 basis points.
Analysts now project additional cuts of 50–200 basis points, citing improved system liquidity and moderating headline inflation, which fell to 16.05 % in October, the lowest in nearly four years.
The committee is also expected to review the Cash Reserve Ratio (CRR) for commercial banks to enhance credit availability.
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While easing monetary policy could lower borrowing costs and encourage investment, officials warn it cannot fully address structural challenges, including persistent food-price inflation and supply disruptions linked to insecurity.
The meeting’s decisions are expected to influence lending rates, credit growth, and economic activity in 2026, as stakeholders seek guidance on the CBN’s policy direction for the new year.