The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the country’s benchmark interest rate, known as the Monetary Policy Rate (MPR), at 26.5 per cent as authorities continue efforts to contain inflation and stabilise the economy.
CBN Governor, Olayemi Cardoso announced the decision on Wednesday, after the conclusion of the committee’s 305th meeting in Abuja.
Key Highlights:
According to Cardoso, all 11 members of the MPC attended the meeting where they reviewed developments in both the global and domestic economies as well as inflation and financial stability outlooks.
The committee also retained the asymmetric corridor around the MPR at +50/-450 basis points.
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In addition, the MPC maintained the Cash Reserve Ratio (CRR) for Deposit Money Banks at 45 per cent, Merchant Banks at 16 per cent, and non-TSA public sector deposits at 75 per cent.
Cardoso explained that the committee’s decision was based on a careful assessment of economic risks and inflationary trends.
Although Nigeria’s headline inflation rate rose slightly from 15.06 per cent in February to 15.38 per cent in March 2026, according to the National Bureau of Statistics, the CBN governor said the increase was largely driven by temporary external shocks.
“The MPC recognises its transitory nature and remains confident that the current macroeconomic environment is sufficiently robust to support a return to disinflation,” Cardoso stated.
He noted that global tensions, particularly the crisis in the Middle East, had increased energy prices, transportation costs and logistics expenses worldwide.
However, Cardoso said the impact on Nigeria had been relatively limited due to recent economic reforms implemented by the government and the apex bank.
“These include exchange rate stability, improvements in external reserve buffers, strengthened monetary policy transmission, a well-capitalised banking system, and ongoing fiscal consolidation, which have significantly bolstered the economy’s ability to absorb external shocks,” he said.
According to him, the reforms have reduced the extent to which global commodity and energy price increases affect domestic inflation.
The CBN governor also welcomed Nigeria’s recent sovereign credit rating upgrade, describing it as a sign of growing confidence in the country’s economic reforms and macroeconomic management.
Cardoso added that members of the MPC agreed that maintaining a cautious monetary policy stance remained necessary to keep inflation expectations under control and sustain macroeconomic stability.
The committee also expressed satisfaction with the successful completion of the banking recapitalisation exercise, which authorities believe will strengthen the country’s financial sector and improve resilience against economic shocks.
