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By Daniel Adaji
The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.5% following the conclusion of its 300th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
Announcing the decision, CBN Governor Olayemi Cardoso said, “The Committee was unanimous in its decision to hold policy.”
He added that the MPC also voted to maintain the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) for Deposit Money Banks at 50%, Merchant Banks at 16%, and the Liquidity Ratio at 30%.
The decision comes amid cautious optimism about Nigeria’s macroeconomic indicators.
According to the MPC, the relative stability in the foreign exchange market, improved balance of payments, and easing petrol prices have contributed to the recent moderation in inflation.
Headline inflation declined to 23.71% in April 2025 from 24.23% in March, according to data from the National Bureau of Statistics. Food inflation also eased to 21.26%, while core inflation dropped to 23.39%.
“The MPC noted the relative improvements in some key macroeconomic indicators which are expected to support the overall moderation in prices,” Cardoso said.
He commended government efforts to increase food supply and curb insecurity in farming communities.
However, the committee flagged persistent inflationary pressures caused by high electricity tariffs, foreign exchange demand, and structural bottlenecks.
It urged continued implementation of reforms to strengthen market confidence and called on the fiscal authorities to boost foreign exchange earnings, especially from oil, gas, and non-oil exports.
“The MPC noted new policies introduced by the Federal Government to boost local production, reduce foreign currency demand pressure, and thus, lessen the pass-through to domestic prices,” Cardoso said.
Despite improvements in GDP growth, external reserves, and the banking sector, the committee expressed concern over declining crude oil prices and global economic uncertainty. It cited the International Monetary Fund’s (IMF) downward revision of global growth forecasts to 2.8% for 2025.
Cardoso reaffirmed that the CBN would maintain “effective oversight of the industry to ensure compliance with regulatory and macroprudential guidelines,” noting ongoing improvements in banking sector performance and recapitalization efforts.
“The Committee reaffirmed their commitment to prioritise policies targeted at anchoring inflation expectations and easing exchange rate pressure,” the governor concluded.
The next MPC meeting is scheduled for July 21 and 22, 2025.