The Central Bank of Nigeria (CBN) Monetary Policy Committee (MPC),has resolved to maintain all key monetary policy parameters, including the Monetary Policy Rate (MPR) at 27.50 percent.
Olayemi Cardoso, the Central Bank Governor, who announced this in a communiqué on Tuesday, said the decision was unanimously supported by all twelve members of the committee, at its 301st meeting in Abuja.
The MPC also retained the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50 percent, CRR for Merchant Banks at 16 percent, and the Liquidity Ratio (LR) at 30 percent.
According to Cardoso, these measures are aimed at sustaining the current momentum of disinflation while containing persistent inflationary pressures.
He further explained that despite a decline in headline inflation to 22.22% in June 2025, marking the third consecutive month of deceleration largely driven by stabilization in energy prices and the foreign exchange market, underlying price pressures remain evident.
The month-on-month inflation, he said, ticked up slightly to 1.68%, due mainly to increased prices of imported food and services.
The committee also considered global risks such as tariff wars and geopolitical tensions that continue to threaten supply chains and import costs.
It said:”The MPC further acknowledged the stability of Nigeria’s banking system with Financial Soundness Indicators remaining steady. Eight banks have met recapitalization requirements, and efforts continue to ensure the resilience and soundness of the financial sector.
“The committee highlighted positive domestic developments including a 3.13% GDP growth in Q1 2025 and gross external reserves reaching US$40.11 billion, providing about 9.5 months of import cover. It also commended government initiatives to improve security and support agriculture, urging continued provision of critical farming inputs to boost food production.
“Looking ahead, the MPC expects inflation to decline further in the coming months owing to tight monetary policy, stable exchange rates, falling petroleum prices, and improving food supply. However, in view of the lingering uncertainties and inflation risks, the committee resolved to maintain the current stance until these risks ease sufficiently.”
