The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 26.5 per cent following the conclusion of its 305th meeting held on May 19 and 20, 2026.
The decision was announced by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, at the end of the two-day meeting attended by all 11 members of the committee.
According to the apex bank, the committee also retained all other key monetary policy parameters, signalling a continued cautious approach aimed at managing inflationary pressures and maintaining macroeconomic stability.
The MPC retained the Standing Facilities Corridor at +50 and -450 basis points around the MPR, while the Cash Reserve Requirement (CRR) for Deposit Money Banks was maintained at 45 per cent.
The CRR for Merchant Banks was also retained at 16 per cent, while non-Treasury Single Account (non-TSA) public sector deposits remained at 75 per cent. The Liquidity Ratio was equally left unchanged at 30 per cent.
Cardoso explained that the decision to maintain the current rates was influenced by persistent inflationary concerns and the need to sustain stability in the broader economy.
The committee’s decision comes amid a recent rise in Nigeria’s inflation figures.
According to the latest Consumer Price Index report released by the National Bureau of Statistics (NBS), the country’s headline inflation rate increased slightly to 15.69 per cent in April 2026 from 15.38 per cent recorded in March 2026.
The increase represented a 0.31 percentage point rise and marked the second consecutive monthly increase after earlier signs of moderation in inflationary trends.
The MPC noted the renewed upward movement in inflation and stressed the need for continued caution in monetary policy management.
Nigeria’s inflation rate has remained one of the key factors shaping decisions by the apex bank in recent months, especially as authorities seek to balance price stability with economic growth and exchange-rate management.
The latest decision follows the MPC’s previous meeting in February 2026, where the committee reduced the MPR by 50 basis points from 27 per cent to 26.5 per cent.
That move marked the first interest rate cut after a prolonged cycle of aggressive monetary tightening introduced to combat rising inflation and stabilise the naira.
Economic analysts said the decision to retain rates suggests that the CBN remains focused on controlling inflation while carefully monitoring the effects of high borrowing costs on businesses, investments and economic recovery.
The apex bank has consistently maintained that monetary tightening remains necessary to address inflationary pressures, improve investor confidence and support stability in the foreign exchange market.
However, concerns persist among manufacturers and business operators who argue that high interest rates continue to increase the cost of borrowing and limit private sector growth.
The MPC’s latest stance indicates that policymakers are prioritising inflation control and macroeconomic stability while observing developments in domestic and global economic conditions before making further adjustments to interest rates.
