The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5%, as announced by Governor Olayemi Cardoso following the latest Monetary Policy Committee (MPC) meeting held on May 19–20, 2025.
The decision reflects the MPC’s cautious approach despite modest declines in inflation and ongoing economic reforms.
“The committee resolved to retain all existing policy parameters to sustain recent gains and further anchor inflation expectations,” Cardoso said.
Key Highlights
MPR: Held at 27.5%
CRR: 50% for Deposit Money Banks, 16% for Merchant Banks
Liquidity Ratio: 30%
Asymmetric Corridor: +500/-100 basis points
Inflation Slows, But Risks Remain
The National Bureau of Statistics (NBS) reported that headline inflation fell to 23.71% in April, down from 24.23% in March. Food inflation, while still high, eased slightly to 21.26%, driven by falling prices of key staples such as maize, wheat, and yam.
Cardoso credited the federal government’s efforts in boosting food supply and agricultural security, urging continued support for farmers through enhanced protection.
“The MPC encourages security agencies to sustain the momentum while government continues to protect farming communities,” he noted.
Persistent Pressures and FX Challenges
Despite easing inflation, the MPC flagged underlying risks, including:
- High electricity costs
- Persistent foreign exchange (FX) demand pressure
- Structural bottlenecks
The Committee praised ongoing economic reforms aimed at boosting local production and reducing FX dependency, urging the CBN to sustain the relative stability in the FX market.
Bottom Line
The MPC’s decision to hold rates signals a wait-and-see approach, balancing early signs of inflation moderation with deep-rooted structural and external challenges.
ADBN TV will continue tracking Nigeria’s monetary policy developments and their impact on inflation, exchange rates, and economic growth.
