The Central Bank of Nigeria (CBN) has decided to keep the Monetary Policy Rate (MPR) unchanged at 27.5%. The decision was announced by CBN Governor Olayemi Cardoso after the 300th Monetary Policy Committee (MPC) meeting held in Abuja on Monday.
Cardoso explained that the committee voted unanimously to retain the MPR, as well as other key rates: the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) for commercial banks at 50%, for merchant banks at 16% and the liquidity ratio at 30%.
He said the decision was based on recent improvements in some economic indicators, including the narrowing gap between the official and parallel forex rates, a positive foreign reserves balance and a drop in fuel prices. These developments, the governor noted, could help moderate inflation in the short to medium term.
Despite the progress, Cardoso acknowledged that inflation remains a concern, largely due to high electricity tariffs, pressure on foreign exchange and structural challenges. He also highlighted government efforts to ease food inflation by improving food supply and enhancing security in farming areas.
The CBN also urged the federal government to boost foreign exchange earnings, especially from oil, gas and non-oil exports. Cardoso specifically encouraged local refineries like Dangote Refinery to increase production and explore opportunities to supply petroleum products to neighboring countries.
However, the MPC expressed concern over falling crude oil prices in the international market. The governor warned that if the trend continues, it could impact Nigeria’s revenue and the successful implementation of the 2025 national budget.