The Central Bank of Nigeria (CBN) has retained its Monetary Policy Rate (MPR) at 27.5%, citing persistent inflationary pressures and global uncertainties.
CBN Governor, Olayemi Cardoso, announced the decision at the end of the 101st Monetary Policy Committee (MPC) meeting held in Abuja.
The Committee also maintained the asymmetric corridor around the MPR at +500/-100 basis points, left the Cash Reserve Ratio (CRR) unchanged at 50% for deposit money banks and 16% for merchant banks, and kept the Liquidity Ratio steady at 30%.
Cardoso explained that the decision to hold all policy parameters was aimed at sustaining the ongoing disinflation trend while keeping inflationary risks in check.
He noted that June 2025 marked the third consecutive month of headline inflation deceleration, largely supported by moderating energy prices and a stable exchange rate.
However, the MPC flagged an uptick in month-on-month inflation as a sign of lingering price pressures. External risks, including trade tensions and geopolitical instability, were also highlighted as potential threats to import prices and supply chains.
Cardoso disclosed that Nigeria’s foreign reserves stood at $40.1 billion as of July 18, providing about nine and a half months of import cover.
On banking reforms, he confirmed that eight banks have met the new recapitalisation requirements, with others progressing toward the target.
The MPC urged continued oversight of the banking system to preserve financial stability and resilience.
The Committee also commended recent gains in the foreign exchange market, supported by higher crude oil production, improved capital inflows, rising non-oil exports, and a drop in overall imports.
Nigeria’s real GDP grew by 3.13% in Q1 2025, up from 2.27% in the same period last year but slightly below the 3.38% recorded in the previous quarter.
Looking ahead, Cardoso warned that global recovery remains fragile amid ongoing tariff wars and geopolitical tensions, which could heighten imported inflation through further supply chain disruptions.
