The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR), the country’s benchmark interest rate, at 26.5 per cent following the outcome of its 306th Monetary Policy Committee (MPC) meeting held in Abuja from July 20 to July 21.
CBN Governor Olayemi Cardoso announced the decision on Tuesday, saying the committee agreed to leave the MPR unchanged at 26.5 per cent. The move represents the second consecutive meeting in which the rate has been retained, after it was reduced by 50 basis points from 27 per cent in February.
Cardoso explained that the MPC opted to maintain its current policy stance after reviewing prevailing economic risks. He noted that while headline inflation eased slightly in June 2026, global economic uncertainty has increased, largely due to renewed conflict in the Middle East.
The committee also revised the asymmetric corridor around the MPR to +50/-450 basis points, a measure intended to encourage banks to lend more by reducing the incentive to keep excess funds with the CBN.
In addition, the MPC retained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, left the CRR for merchant banks unchanged at 16 per cent, and maintained the 75 per cent CRR on non-TSA public-sector deposits to support liquidity management.
According to Cardoso, Nigeria’s economy has remained broadly resilient despite external pressures and global uncertainties.
The MPC’s decision comes shortly after the National Bureau of Statistics (NBS) reported that the country’s headline inflation rate declined marginally to 15.91 per cent in June 2026, from 15.93 per cent recorded in May 2026.
