Central Bank of Nigeria (CBN) has retained all key monetary policy parameters from the first quarter of 2025, including the Monetary Policy Rate (MPR) at 27.5%, in an effort to maintain macroeconomic stability and reduce inflationary pressures.
The announcement was made by the CBN Governor, Olayemi Cardoso, at the end of the Monetary Policy Committee (MPC) meeting held on May 19 and 20, 2025.
The committee resolved to maintain the MPR at 27.5%, an asymmetric corridor around the MPR at +500/-100 basis points, a Cash Reserve Ratio (CRR) of 50% for Deposit Money Banks and 16% for Merchant Banks, and the Liquidity Ratio at 30%.
Cardoso cited the recent National Bureau of Statistics (NBS) report, which pegged April 2025 inflation at 23.71%, down from 24.23% in March. He attributed the marginal decline to government efforts to stabilize food supply and enhance security in agrarian regions.
“Food inflation moderated to 21.26% in April from 21.79% in March, thanks to efforts by the federal government to increase food production and safeguard farmers,” Cardoso noted.
He urged security agencies to sustain their momentum, emphasizing the importance of protecting rural communities to boost domestic agricultural productivity.
Despite the modest gains, the MPC acknowledged persistent underlying inflation pressures, including high electricity costs, foreign exchange (FX) demand, and structural bottlenecks.
Cardoso said the bank remains committed to reforming the FX market and supporting fiscal initiatives to boost local production and ease inflationary pass-through.
“Given the relative stability in the FX market, members urge the Bank to continue ongoing reforms to support macroeconomic recovery,” he added.
Investor Confidence and Economic Stability
The CBN Governor said Nigeria’s economic environment has shown improved stability, encouraging both local and foreign investors to seize opportunities in the evolving market.
“The inflation numbers speak for themselves. There’s no one-size-fits-all solution to the economic challenges. But a convergence of reforms and consistent effort will deliver better results,” Cardoso stated.
He also hinted at the growing competitiveness of the naira, which he said could stimulate export activities if current policies are sustained.
“I am optimistic. The naira is more competitive today. If we stay the course, we’ll see significant growth in exports and economic diversification,” he concluded.
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