The Central Bank of Nigeria has kept its Monetary Policy Rate unchanged at 26.5 percent alongside other key monetary parameters. CBN Governor Olayemi Cardoso announced the decision in Abuja following the 305th Monetary Policy Committee meeting, stating that the Standing Facility Corridor around the MPR remains at +50/-450 basis points.
Furthermore, the Cash Reserve Requirements were sustained at 45 percent for deposit money banks, 16 percent for merchant banks, and 75 percent for non-Treasury Single Account public sector deposits. Cardoso explained that the decision to maintain the current rates followed a comprehensive review of the prevailing macroeconomic risks.
Addressing the slight uptick in inflation over the past two consecutive months, the MPC attributed the trend to external shocks, particularly the ongoing crisis in the Middle East, which has inflated global energy, transportation, and logistics costs. However, the committee described the inflationary pressure as transitory and expressed optimism regarding a return to a disinflationary trend.
The apex bank chief highlighted that previous policy adjustments—such as foreign exchange stability, increased external reserve buffers, enhanced monetary policy transmission, and ongoing fiscal consolidation—have successfully shielded the domestic economy from severe global price shocks. Consequently, the MPC resolved that a cautious and vigilant policy posture is vital to stabilize inflation expectations and safeguard overall macroeconomic stability.
On external buffers, Cardoso revealed that the country's foreign reserves have risen to $49.49 billion, approaching pre-crisis thresholds. The current reserve level provides a nine-month import cover, which is projected to boost investor confidence and reinforce economic resilience despite expected near-term headline pressures.
Regarding foreign exchange operations, the governor clarified that the central bank is not intervening in the FX market, noting that the market possesses sufficient depth to sustain itself independently. He added that inflows continue to balance out while the apex bank addresses loan repayments and the specific requirements of government agencies. Commenting on the banking sector, Cardoso assured that proactive frameworks are in place to manage post-recapitalisation risks, adding that special extensions would be granted to financial institutions dealing with legal and regulatory bottlenecks to protect systemic stability.
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