In a closely watched decision, the Central Bank of Nigeria (CBN) has once again left the Monetary Policy Rate (MPR) unchanged at 27.5 per cent, maintaining its stance for the third consecutive time this year.
The announcement came at the end of the 301st Monetary Policy Committee (MPC) meeting held Tuesday in Abuja.
CBN Governor Olayemi Cardoso said the committee’s decision is anchored on the ongoing battle against inflation and the need to stabilize prices in Africa’s largest economy.
“The Committee voted unanimously to retain the MPR at 27.5 per cent, with an asymmetric corridor of +500/-100 basis points,” Cardoso told journalists.
In addition to holding the MPR steady, the CBN maintained other key policy tools:
Cash Reserve Ratio (CRR): Remains at 50% for Deposit Money Banks and 16% for Merchant Banks.
Liquidity Ratio: Retained at 30%.
The unchanged stance signals the apex bank’s cautious approach in managing the country’s monetary environment amid persistent inflationary pressures, particularly in the food sector.
On the sidelines of the announcement, Cardoso provided an update on the ongoing bank recapitalisation effort launched earlier this year.
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According to him, eight Nigerian banks have so far met the new capital requirements set by the CBN.
Though he stopped short of naming them, he expressed confidence that more institutions are on track to comply before the March 31, 2026 deadline.
Under the directive:
International banks are expected to raise their minimum capital to ₦500 billion.
National banks must meet a ₦200 billion threshold.
Regional banks are required to hit ₦50 billion.
Cardoso also acknowledged the federal government’s efforts in enhancing security nationwide, noting its ripple effect on food availability and price stability.
“The MPC recognized that improved security infrastructure can ease agricultural activities and stabilize food prices, a key driver of headline inflation,” he added.
The retention of the MPR underscores the MPC’s commitment to a tight monetary policy stance, even as concerns remain around slowing economic growth and high cost of living.