The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.50 percent, marking the second consecutive hold in 2025. This decision was announced by CBN Governor Olayemi Cardoso following the conclusion of the Monetary Policy Committee’s (MPC) 300th meeting in Abuja on Tuesday.
Governor Cardoso stated, “The committee was unanimous in its decision to hold policy and thus decided as follows: Retain the MPR at 27.50 percent.” The pause allows the committee to better assess near-term economic developments before making further adjustments.
Alongside the MPR, the MPC retained other key monetary parameters, including the Cash Reserve Ratio (CRR) at 50 percent for Deposit Money Banks and 16 percent for Merchant Banks, the Liquidity Ratio at 30 percent, and the asymmetric corridor around the MPR at +500/-100 basis points.
The decision was influenced by recent improvements in Nigeria’s macroeconomic indicators. The National Bureau of Statistics reported that headline inflation dropped to 23.71 percent in April 2025 from 24.23 percent in March, while month-on-month inflation declined significantly from 3.9 percent to 1.86 percent.
Despite these positive trends, the CBN remains cautious due to ongoing inflationary pressures stemming from high electricity tariffs, sustained foreign exchange demand, and structural economic challenges.
This retention follows six consecutive rate hikes in 2024, with the MPR having been raised to 27.50 percent in November 2024 to curb inflation and stabilize the naira. The MPC’s current stance signals a focus on consolidating gains in price stability and allowing existing monetary measures to fully impact the economy.
The decision has drawn mixed reactions, with some business leaders advocating for a rate cut to stimulate growth, while others commend the cautious approach aimed at maintaining economic stability.