CBN Holds Monetary Policy Rate Amid Global Risks

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), chaired by Governor Olayemi Cardoso, decided to maintain all key monetary policy parameters during its 306th meeting held on July 20 and 21, 2026. The committee kept the Monetary Policy Rate (MPR) unchanged at 26.5%, retained the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) at 40.5% for Deposit Money Banks and 16% for Merchant Banks, and the Liquidity Ratio at 30%.

Cardoso stated that the decision was made after a thorough assessment of domestic and global economic conditions, emphasizing that while Nigeria experienced a modest decline in headline inflation to 15.91% in June 2026, external risks remain high due to geopolitical tensions. He noted the resilience of Nigeria's economy, attributed to reforms by fiscal and monetary authorities, and stressed the importance of policy coordination between the Federal Government and the Central Bank for macroeconomic stability.

Dr. Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, supported the MPC's decision as aligned with current economic realities.