The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.0 per cent, even as inflation continued its downward trend, easing to 16.05 per cent in October 2025.
This was revealed in a communiqué issued by CBN Governor, Olayemi Cardoso, following the 303rd meeting of the Monetary Policy Committee (MPC) held on November 24–25, 2025, in Abuja.
Cardoso announced that while the MPR remains unchanged, the Committee adjusted the Standing Facility Corridor to +50/-450 basis points, maintaining other policy tools such as the Cash Reserve Requirement (CRR) and Liquidity Ratio.
He said the decision reflects the MPC’s cautious approach aimed at consolidating gains made in the fight against inflation, especially amid persistent global economic uncertainties.
The Committee highlighted that headline inflation declined for the seventh consecutive month, dropping from 18.02 percent in September to 16.05 percent in October. The sustained disinflation, it noted, was driven by factors including a stable exchange rate, improved capital inflows, a surplus current account balance, and enhanced domestic food supply.
Core and food inflation also moderated significantly.
Despite the positive trajectory, the Committee stressed that inflation remains at elevated double-digit levels, making continued vigilance and targeted policy actions necessary.
On the broader economy, the MPC reported robust external sector performance, with foreign reserves rising to $46.7 billion in November—enough to cover 10.3 months of imports. Real GDP growth remained strong at 4.23 percent in the second quarter of 2025.
The Committee also welcomed Nigeria’s recent sovereign credit rating upgrade and removal from the Financial Action Task Force (FATF) grey list, developments expected to further boost investor confidence and attract more capital inflows.
Progress in the ongoing banking sector recapitalization exercise was acknowledged, with 16 banks already fully compliant with the new capital requirements.
Globally, the MPC observed a cautiously improving outlook driven by trade recovery and easing geopolitical tensions, though risks such as rising protectionism and geoeconomic fragmentation persist. It noted that global inflation is expected to decline but stay above pre-pandemic levels in the near term.
Looking ahead, the Committee anticipates continued disinflation, supported by earlier monetary policy tightening and improved food supply driven by seasonal harvests.
Reaffirming its commitment to a data-driven approach, the MPC pledged to maintain price stability and safeguard the financial system.
The next MPC meeting is slated for February 23 and 24, 2026.
