The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 percent, maintaining the benchmark interest rate at its current level.
CBN Governor Olayemi Cardoso disclosed the decision on Wednesday in Abuja at the end of the committee’s 305th meeting, noting that all 11 members were present to review global and domestic economic conditions and assess the medium-term outlook.
The committee also left the asymmetric corridor around the MPR unchanged at +50/-450 basis points. Other key policy parameters were retained, including the Cash Reserve Ratio (CRR), which remains 45 percent for deposit money banks, 16 percent for merchant banks, and 75 percent for non-TSA public sector deposits.
Cardoso said the decisions were based on a comprehensive assessment of risks to the outlook, amid ongoing inflationary pressures.
Nigeria’s headline inflation rose to 15.38 percent in March 2026, up from 15.06 percent in February, according to the National Bureau of Statistics (NBS), marking a second consecutive monthly increase.
But the CBN governor said the uptick is largely temporary, driven by external shocks rather than entrenched domestic factors.
“The MPC recognises its transitory nature and remains confident that the current macroeconomic environment is sufficiently robust to support a return to disinflation,” he said.
Cardoso pointed to spillovers from the Middle East crisis, which have pushed up global energy, transport, and logistics costs. However, he said Nigeria has so far been partially insulated due to recent policy reforms.
“Indications are that the impact of the crisis on the Nigerian economy has been minimal due to the benefits of prior policy reforms,” he said, citing exchange rate stability, improved external reserves, stronger monetary policy transmission, a better-capitalised banking system, and ongoing fiscal consolidation.
According to him, these reforms have helped reduce the transmission of global price shocks into the domestic economy.
“As a result, the pass-through of global commodity and energy price shocks to domestic inflation has been significantly mitigated,” he said, adding that the MPC was therefore convinced that the essential conditions for price stability remain firmly in place.
Cardoso also welcomed Nigeria’s recent sovereign rating upgrade despite lingering global headwinds, describing it as a boost to investor confidence and policy credibility.
He said the committee agreed that maintaining a cautious and vigilant monetary stance remains essential to anchor inflation expectations and preserve macroeconomic stability.
Members also “noted with satisfaction” the successful completion of the banking recapitalisation exercise, which the apex bank says will further strengthen the resilience of the financial sector.
