The Central Bank of Nigeria (CBN) has announced the retention of all key monetary policy parameters from the first quarter of 2025, including the benchmark interest rate, which remains at 27.50 per cent.
CBN Governor, Olayemi Cardoso, made the announcement on Tuesday, following the conclusion of the Monetary Policy Committee (MPC) meeting held on May 19 and 20.
The decision mirrors the outcome of the Committee’s 299th meeting in February, where members resolved to retain the Monetary Policy Rate (MPR) at 27.50 per cent, maintain the asymmetric corridor at +500/-100 basis points, keep the Cash Reserve Ratio (CRR) at 50.00 per cent for Deposit Money Banks and 16.00 per cent for Merchant Banks, and sustain the Liquidity Ratio at 30.00 per cent.
Cardoso explained that the MPC’s decision was influenced by recent data from the National Bureau of Statistics (NBS), which showed a slight drop in the country’s inflation rate. According to the NBS, headline inflation eased to 23.71% in April 2025, down from 24.23% in March. Food inflation also moderated to 21.26% from 21.79%, driven by a slight decrease in prices of staples such as maize, yam, and wheat.
He credited the federal government’s efforts to increase food supply and tackle insecurity particularly in rural farming communities for the decline in food inflation.
“The MPC commends the government for its interventions and urges security agencies to maintain the momentum, while ensuring farmers receive the protection they need to enhance local food production,” Cardoso said.
Despite the improvements, the committee flagged ongoing inflationary pressures stemming from high electricity tariffs, sustained demand for foreign exchange, and structural economic challenges.
Cardoso also highlighted recent government policies aimed at boosting domestic production and reducing reliance on imports, noting that these efforts are crucial in mitigating the impact of high interest rates on local prices.
He further remarked that the Nigerian economy is showing signs of stabilization, encouraging both local and foreign investors to seize emerging opportunities.
