The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) on Wednesday retained the benchmark interest rate at 26.5 per cent.
CBN Governor Olayemi Cardoso announced the decision at the conclusion of the bank’s two-day MPC 305th meeting, held from 19 to 20 May in Abuja.
The decision comes after the central bank earlier reduced the Monetary Policy Rate (MPR) by 50 basis points in February, bringing it down from 27 per cent, a level it had held steady since November 2025.
Speaking after the meeting, the CBN boss said that the committee’s decision is based on the recent surge in inflation and external shocks.
“The decisions of the MPC were anchored on a comprehensive assessment of risk to the outlook, although inflation has risen marginally for two consecutive months, largely induced by external shocks.
“The MPC recognises its transitory nature and remains confident. confident that the current macroeconomic environment is sufficiently robust to support a return to disinflation,” he said.
At the meeting on Wednesday, the MPC adjusted the asymmetric facilities corridor around the MPR at +50/-450 basis points, a move aimed at discouraging banks from keeping idle funds with the CBN and encouraging more lending into the economy.
It also retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent and retained merchant banks at 16 per cent.
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The committee also left the CRR on non-TSA public sector deposits for liquidity management considerations at 75 per cent.
The borrowing rate was retained amid a continual rise in Nigeria’s headline inflation rate, which increased to 15.69 per cent in April, from 15.38 per cent in March and 15.06 per cent in February, according to the National Bureau of Statistics (NBS).
This followed rising prices of goods and services in Nigeria, largely driven by higher fuel costs, amid growing political tensions involving the US, Israel, and Iran since February.
The war disrupted oil transit through the Strait of Hormuz, a major oil shipping route in the Middle East.