The Central Bank of Nigeria unexpectedly slashed its monetary policy rate by 100 bps to 11.5% during its September 2020 meeting, bringing borrowing costs to the lowest since 2016. This was the second rate cut this year and came even as inflation has been above target since 2015, to continue supporting the economy that plunged 6.1% in the Q2 hit by the global pandemic. Meanwhile, headline inflation continued to climb to an over two-year high of 13.2% in August, pushed by higher food prices that remain under pressure due to floods, a weaker currency and clashes between herders and farmers. The Committee said that the economy may continue to grapple with the effects of the pandemic throughout the rest of the year, projecting growth in Q4 2020, or at least by Q1 2021. The central bank stressed the urgent need for a combination of broad-based monetary and fiscal policy measures to curb the rise in inflation and contraction in output growth.

Interest Rate in Nigeria averaged 11.22 percent from 2007 until 2020, reaching an all time high of 14 percent in July of 2016 and a record low of 6 percent in July of 2009. This page provides - Nigeria Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Nigeria Interest Rate - data, historical chart, forecasts and calendar of releases - was last updated on October of 2020. source: Central Bank of Nigeria

Interest Rate in Nigeria is expected to be 12.50 percent by the end of this quarter, according to Trading Economics global macro models and analysts expectations. Looking forward, we estimate Interest Rate in Nigeria to stand at 11.50 in 12 months time. In the long-term, the Nigeria Interest Rate is projected to trend around 11.50 percent in 2021, according to our econometric models.

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Nigeria Interest Rate

Actual Previous Highest Lowest Dates Unit Frequency
11.50 12.50 14.00 6.00 2007 - 2020 percent Daily


Calendar GMT Actual Previous Consensus TEForecast
2020-03-24 01:30 PM 13.5% 13.5% 13.5% 12.5%
2020-05-28 01:30 PM 12.5% 13.5% 13.5% 13.5%
2020-07-20 01:30 PM 12.5% 12.5% 12.5%
2020-09-22 01:30 PM 11.5% 12.5% 12.5%
2020-11-23 01:30 PM 11.5% 12.5%


News Stream
Nigeria Unexpectedly Cuts Key Interest Rate to 11.5%
The Central Bank of Nigeria unexpectedly slashed its monetary policy rate by 100 bps to 11.5% during its September 2020 meeting, bringing borrowing costs to the lowest since 2016. This was the second rate cut this year and came even as inflation has been above target since 2015, to continue supporting the economy that plunged 6.1% in the Q2 hit by the global pandemic. Meanwhile, headline inflation continued to climb to an over two-year high of 13.2% in August, pushed by higher food prices that remain under pressure due to floods, a weaker currency and clashes between herders and farmers. The Committee said that the economy may continue to grapple with the effects of the pandemic throughout the rest of the year, projecting growth in Q4 2020, or at least by Q1 2021. The central bank stressed the urgent need for a combination of broad-based monetary and fiscal policy measures to curb the rise in inflation and contraction in output growth.
2020-09-22
Nigeria Leaves Monetary Policy Unchanged
The Central Bank of Nigeria left its benchmark interest rate unchanged at 12.5% during its July 2020 meeting after unexpectedly trimming it by 100 bps on May 28th. Policymakers said that the previous rate cut was having a positive impact as credit growth had increased significantly in the economy. The Committee expects that the Nigerian economy may record negative quarterly GDP growth in the 2nd quarter of 2020, but there is cautious optimism that the year may end in marginal negative territory, with strong recovery prospects in 2021. The Commiittee noted that the current efforts by the Federal Government to contain the pandemic would reposition the economy on a sustainable path of rapid recovery. Policymakers added that was mindful of the cut in policy rate and the need to allow time for its effect to permeate the economy.
2020-07-20
Nigeria Unexpectedly Cuts Key Interest Rate to 12.5%
The Central Bank of Nigeria slashed its monetary policy rate by 100 bps to 12.5% during its May 2020 meeting, surprising markets that expected no change. It was the first rate cut since March of 2019. The decision aimed at reviving the economy battered by the coronavirus pandemic and collapsing oil prices despite persistent inflationary pressures. Policymakers explained that a lower rate would stimulate credit expansion to critically important sectors and thus support employment. Governor Emefiele added that the economy would contract in the second and third quarter of the year but recover in the fourth quarter helped by fiscal and monetary measures. Meanwhile, inflation continued to climb to a two-year high of 12.34 percent in April, persistently above the target range of 6-9%.
2020-05-28
Nigeria Holds Key Interest Rate at 13.5%
The Central Bank of Nigeria left its monetary policy rate at 13.5% during its March 2020 meeting, saying it would assess measures already taken to support the economy in response to the coronavirus outbreak before deciding whether additional steps should be taken. The real GDP growth is expected to weaken in 2020, hampered by the tepid global demand and supply, resulting from the recent outbreak of COVID-19, and the oil price war which has resulted in supply glut and decline in crude oil prices. Meantime, policymakers noted the persistence of inflationary pressures, with the headline inflation climbing for the sixth straight month to a near two-year high of 12.2% in February. The Committee also reiterated the need for the government to urgently reduce reliance on oil revenue by gradually diversifying the economy and improving tax collection.
2020-03-24

Nigeria Interest Rate
In Nigeria, interest rate decisions are taken by The Central Bank of Nigeria. The official interest rate is the Monetary Policy Rate (MPR).