Korede Abdullah in Lagos
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has again retained the Monetary Policy Rate (MPR) at 27.5 per cent, marking the third consecutive time in 2025 that the rate remains unchanged.
Announcing the outcome of the committee’s 301st meeting in Abuja on Tuesday, CBN Governor Olayemi Cardoso, said, “The Committee voted to retain Monetary Policy Rates at 27.5 per cent, retain the Cash Reserve Ratio for Deposit Money Banks at 50 per cent and Merchant Banks at 16 per cent.”
The MPR serves as a benchmark for lending rates across Nigeria’s banking sector and is a critical tool for managing inflation and monetary stability.
Focus on Inflation and Food Security
Governor Cardoso explained that the decision to hold rates steady is part of the apex bank’s strategy to curb rising inflation and stabilise prices amid economic headwinds.
“Also, the Liquidity Ratio has been maintained at 30 per cent,” he noted, adding that the MPC considered the federal government’s ongoing efforts to strengthen security, which is vital for improving food supply and reducing pressure on consumer prices.
Nigeria has been grappling with double-digit inflation, driven largely by food costs and currency depreciation, making the MPC’s decisions closely watched by investors and businesses.
Banks Push Ahead with Recapitalisation
In a related development, Cardoso disclosed that eight banks have so far met the CBN’s recapitalisation requirements ahead of the March 2026 deadline.
“Some banks have crossed the hurdle and others are working hard to meet up,” he said, though he did not reveal the names of compliant institutions.
Under the new guidelines, international banks must maintain a minimum paid-up capital of N500 billion, national banks N200 billion, and regional banks N50 billion.
The recapitalisation drive is aimed at strengthening the resilience of the banking sector to better support the Nigerian economy.
