The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) concluded its 303rd meeting on November 24 and 25, 2025, reviewing key developments in both the global and domestic economies, including emerging risks to the outlook.
The MPC decided to maintain the Monetary Policy Rate (MPR) at 27%, while adjusting the Standing Facility corridor around the MPR at +50/-450 basis points.
Cash Reserve Requirements (CRR) were also retained: 45% for Deposit Money Banks, 16% for Merchant Banks, and 75% for non-TSA public sector deposits. The Liquidity Ratio remained unchanged at 30%.
The Committee said the decision reflects the need to sustain progress toward achieving low and stable inflation. It also highlighted that sixteen banks have now fully complied with revised capital requirements, urging all banks to ensure continued implementation and adherence to recapitalisation policies.
According to the MPC communiqué, Nigeria’s headline inflation stands at 16.05%, food inflation at 13.12%, and foreign reserves at US$46.70 billion as of November 14, 2025.
Headline inflation (year-on-year) further declined to 16.05% in October 2025, from 18.02% in September, driven by a moderation in both food and core inflation. Food inflation fell significantly to 13.12% in October 2025 from 16.87% in the preceding month, reflecting improved domestic food supply, stable exchange rate, and base effect.
Similarly, core inflation slowed to 18.69 per cent (year-on-year) in October 2025, from 19.53% in the preceding month, owing largely to a decline in the price of furnishing & household maintenance.
Real Gross Domestic Product (GDP) for the second quarter of 2025 sustained its positive trajectory, evidenced by the growth rate of 4.23 per cent (year-on-year), compared with 3.13% in the first quarter of 2025.
In addition, the Purchasing Manager’s Index increased significantly to 56.4 points in November 2025, the highest in the last five years, pointing to a more positive growth outlook for the third and fourth quarters of 2025.
Gross external reserves increased by 9.19%, reaching $46.70 billion on November 14, 2025, from $42.77 billion at end-September 2025, sufficient to cover 10.3 months of imports for goods and services.”
The MPC concluded with a positive outlook for food supply and prices, attributing expected moderation in inflation to the ongoing seasonal harvest cycle.
“The Committee’s forecast indicates a sustained disinflation in the near term, to be largely driven by the lagged impact of previous monetary policy tightening measures, supported by the continued stability in the foreign exchange market. In addition, the ongoing seasonal harvest cycle is expected to boost local food supply and further moderate food prices.”
