The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27 percent, reaffirming its commitment to sustaining monetary stability and fostering long-term economic growth. CBN Governor Olayemi Cardoso assured Nigerians that the benefits of recent monetary reforms would gradually translate into real economic improvements as investor confidence strengthens.
Cardoso made the remarks while briefing journalists after the 303rd Monetary Policy Committee (MPC) meeting in Abuja on Tuesday. His comments come amid public concerns that the recent decline in inflation to 16.05 percent has not yet significantly eased the cost of living.
- “To my mind, this is the core of the matter. Stability is the foundation of growth. Years ago, our market faced instability. Today, we have achieved stability. After stability comes investment, and after investment comes growth,” Cardoso said.
- “In some sectors, investment and growth even go hand-in-hand. The fact that we now have stability gives greater confidence to investors, who will ultimately invest. We need stable and enduring growth, not short-term fixes.”
CBN Retains Key Monetary Parameters
At the meeting, the MPC confirmed that other monetary policy parameters will also remain unchanged, maintaining a tight monetary stance:
- Cash Reserve Ratio (CRR): 45% for commercial banks, 16% for merchant banks, and 75% on non-TSA public sector deposits
- Liquidity Ratio (LR): 30%
- Standing Facilities Corridor: +50 / -450 basis points around the MPR
The MPC emphasized that these measures aim to achieve low and stable inflation, noting that recent monetary tightening, a stable exchange rate, and PMS price stability have contributed to a deceleration in headline inflation. The Committee, however, stressed that inflation remains high, necessitating continued and coordinated policy efforts.
The MPC also acknowledged progress in the banking sector, confirming that 16 banks have met regulatory recapitalization requirements.
Global Outlook and Policy Focus
Governor Cardoso highlighted that, while trade tensions between the US and key global partners may constrain growth, the medium-term outlook indicates recovery. The MPC expects global inflation to remain above pre-pandemic levels in the near term.
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Cardoso reiterated the CBN’s commitment to evidence-based monetary policy, aimed at safeguarding price stability, strengthening financial system resilience, and supporting sustainable economic development.
- “The stability we have achieved in our financial system is a fundamental step toward sustained growth. Nigerians will gradually feel the benefits of monetary policy as investment expands and the economy grows,” he added.
The MPC’s decision reflects a focus on ensuring that Nigeria’s economic recovery is stable, enduring, and inclusive, balancing inflation control with policies that encourage investment and growth.
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