The Central Bank of Nigeria has retained the country’s benchmark interest rate at 26.5 per cent following the conclusion of the 305th Monetary Policy Committee meeting held in Abuja. The decision reflects the apex bank’s cautious approach toward managing inflation and stabilising Nigeria’s economy amid persistent economic uncertainties.
CBN Governor, Olayemi Cardoso, announced the decision on Wednesday, stating that members of the Monetary Policy Committee unanimously agreed to maintain the Monetary Policy Rate at 26.5 per cent in order to sustain recent gains in macroeconomic stability and control inflationary pressures.
The decision comes barely months after the apex bank reduced the interest rate by 50 basis points from 27 per cent to 26.5 per cent during its February 2026 MPC meeting. Financial analysts had been divided over whether the bank would proceed with another rate cut or maintain the current rate following recent movements in inflation and exchange rates. ..READ THE FULL ARTICLE HERE .
According to the latest figures released by the National Bureau of Statistics, Nigeria’s headline inflation rate rose slightly from 15.38 per cent in March to 15.69 per cent in April 2026. The increase reportedly influenced the committee’s decision to hold rates steady rather than risk additional inflationary pressure through further monetary easing.
Cardoso explained that the committee considered several economic indicators before arriving at its decision, including inflation trends, exchange rate stability, food prices, global oil market developments, and external economic risks. He stressed that maintaining price stability remains the central bank’s top priority as the country continues to battle the impact of high living costs and global economic uncertainty.
The CBN also retained other monetary parameters, including the Cash Reserve Ratio and liquidity ratio for commercial banks. Analysts believe the move is aimed at maintaining tight monetary conditions to curb excess liquidity within the financial system and reduce pressure on the naira.
Economic experts say the decision may provide temporary stability for investors and the foreign exchange market, although businesses and manufacturers are expected to continue facing challenges linked to high borrowing costs. Many operators in the private sector have repeatedly argued that elevated interest rates make access to credit difficult for businesses struggling with rising operational expenses.
Despite concerns from businesses, the apex bank insisted that caution remains necessary to prevent inflation from rising further. Cardoso maintained that the Monetary Policy Committee would continue monitoring domestic and global economic developments before making future adjustments to interest rates.
