Nigerian Central Bank Divided on Monetary Policy Decision, Holds Rate Steady at 27%

The Monetary Policy Committee of the Central Bank of Nigeria was sharply divided at its November 2025 meeting, with a 6-5 split in favor of maintaining the policy rate at 27%. Governor Olayemi Cardoso argued for holding the rate to support disinflationary progress, while some members favored a modest rate cut.

The decision reflects differing assessments of Nigeria's recent disinflationary trend and the need to preserve gains in stabilizing prices and the exchange rate. Inflation has declined from 18.02% in September to 16.05% in October.

The committee also highlighted the importance of maintaining key policy parameters to prevent disruptions in the ongoing transmission of previous policies.