Nigeria’s central bank left its benchmark interest rate unchanged at 26.5% for a third consecutive meeting on Tuesday, opting to maintain a tight monetary stance as foreign exchange reserves strengthened and inflation continued to moderate.
The Monetary Policy Committee (MPC) retained the Monetary Policy Rate (MPR) at 26.5%, while leaving the Cash Reserve Ratio (CRR) at 50% for deposit money banks and 16% for merchant banks.
The Liquidity Ratio was also maintained at 30%, and the asymmetric corridor around the MPR remained at +500/-100 basis points.
Central Bank Governor Olayemi Cardoso said the decision reflected the committee’s determination to sustain progress in reducing inflation while guarding against external risks, including geopolitical tensions and volatility in global commodity markets.
Cardoso said Nigeria’s external reserves had risen to $52.5 billion, providing about 10 months of import cover, compared with about $38.3 billion when the current management assumed office.
He attributed the increase to improved foreign exchange inflows, stronger investor confidence and reforms in the foreign exchange market.
The governor said recent macroeconomic indicators showed signs of improving stability, citing a narrowing gap between the official and parallel foreign exchange markets, stronger capital inflows and continued moderation in inflation.
The MPC acknowledged that inflationary pressures had eased over recent months but said upside risks remained, including food supply constraints, insecurity in agricultural communities and uncertainty in the global economy.
The decision was widely expected after Cardoso signalled last week that policymakers would adopt a cautious approach to monetary easing despite nearly a year of disinflation, saying the committee would remain guided by incoming economic data rather than market expectations.
Nigeria’s central bank has kept interest rates at a record high since late 2025 as it seeks to consolidate gains from monetary tightening and broader economic reforms aimed at stabilising prices and attracting foreign investment.
