CPPE Backs CBN's Interest Rate Decision Amid Inflation

The Centre for the Promotion of Private Enterprise (CPPE) has expressed support for the Central Bank of Nigeria's (CBN) decision to retain the monetary policy rate (MPR) at 26.5% during the 305th Monetary Policy Committee (MPC) meeting. This decision reflects a pragmatic approach to Nigeria's inflation dynamics, particularly in light of global uncertainties and geopolitical tensions affecting energy prices.

The CBN also maintained the cash reserve ratio (CRR) at 15% for merchant banks and 75% for non-TSA public sector deposits. CPPE noted that current inflation in Nigeria is driven by supply-side disruptions and excess domestic demand.

The CBN's monetary policy remains a crucial tool for stabilizing the economy, although it cannot resolve structural bottlenecks. The MPC's cautious stance is underscored by rising inflation figures recorded in March and April 2026.

The CBN's reserves stood at $48.35 billion at the end of March, sufficient to cover nine months of imports, which is expected to bolster investor confidence and support exchange rate stability.