The Central Bank of Nigeria (CBN) has decided to maintain the benchmark interest rate at 27.5%, following the conclusion of its 301st Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
CBN Governor Olayemi Cardoso disclosed the committee’s resolution, noting that it marks the third time in 2025 that the Monetary Policy Rate (MPR) remains unchanged. The MPR serves as a key indicator for lending rates in the Nigerian economy.
In addition to holding the MPR steady, the apex bank also retained the asymmetric corridor at +500/-100 basis points. The Cash Reserve Ratio (CRR) for Deposit Money Banks was maintained at 50%, while Merchant Banks will continue with a CRR of 16%. The Liquidity Ratio also remains unchanged at 30%.
Governor Cardoso explained that the decision is aimed at maintaining stability in the financial system while sustaining efforts to curb inflation. “The MPC agreed that tightening policy further at this point would not significantly improve the inflation trajectory,” he said.
He further praised recent efforts by the federal government in improving national security, which, according to the committee, has had a positive impact on food availability and overall price moderation.
In another key update, the governor revealed that eight Nigerian banks have so far met the new capital requirements set by the CBN. However, Cardoso declined to reveal the identities of the compliant institutions.
The recapitalization drive, which began on April 1, 2024, mandates that banks with international licenses maintain a minimum capital of ₦500 billion, national banks ₦200 billion, and regional banks ₦50 billion by the March 31, 2026 deadline.
The CBN emphasized that this monetary stance is essential to avoid derailing macroeconomic stability and to provide the right environment for continued reforms in the banking sector.
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