The Central Bank of Nigeria (CBN) has increased the country’s Monetary Policy Rate (MPR) to 27.50%, up from 27.25%. This marks the sixth time the CBN has raised the interest rate since February 2024.
CBN Governor, Mr. Olayemi Cardoso, made the announcement following the Monetary Policy Committee (MPC) meeting in Abuja this afternoon. Cardoso confirmed that the MPC voted unanimously to increase the MPR by 25 basis points, with the decision aimed at addressing rising inflationary pressures.
In addition to the MPR hike, the CBN has decided to maintain the Cash Reserve Ratio (CRR) at 50% for Deposit Money Banks and 16% for Merchant Banks. The Liquidity Ratio (LR) remains at 30%, and the Asymmetric Corridor is retained at +500/-100 basis points around the MPR.
Cardoso noted that the latest decision was influenced by the renewed inflationary pressures, as both headline food and core inflation measures saw year-on-year increases in October 2024. “Members, therefore, agreed unanimously to remain focused on addressing price developments,” Cardoso said.
The CBN’s latest move follows a similar decision made in September 2024 when the MPR was raised by 50 basis points from 26.75% to 27.25%. Despite these efforts to curb inflation, the monetary tightening has faced criticism from small business owners, who argue that the continuous rate hikes may hinder business growth, lead to downsizing, and ultimately result in job losses.
