Nigeria Holds Key Policy Rate at 27.5%

2025-05-20 13:16 By Luisa Carvalho 1 min. read

Nigeria's central bank kept its benchmark lending rate at 27.50% on May 20, 2025, maintaining its policy stance for a second straight meeting, as it seeks a clearer understanding of near-term economic conditions.

Nigeria’s annual inflation rate fell to 23.71% in April 2025, from 24.23% in March, but it remains persistently high, exhibiting an uneven trend since the CPI rebasement in January.

The recent drop in oil prices, Nigeria's primary export, combined with a weakening naira since April—following the US imposition of a 10% tariff on trading partners, which rattled global markets—has further added to the uncertainty surrounding the inflation outlook.



News Stream
Nigeria Lowers Key Policy Rate to 26.5%
Nigeria's central bank trimmed its key interest rate by 50 bps to 26.50% during its February 2026 meeting, after keeping it unchanged at 27% in November last year. The move pushed down borrowing costs to the lowest since mid-2024, aiming to support growth amid moderating inflation. Governor Olayemi Cardoso said that recent data suggested the ongoing disinflation trajectory would continue. He added that the lagged transmission of previous monetary tightening, sustained exchange rate stability and enhanced food supply were helping bring down inflation. Nigeria’s headline inflation rate eased slightly to 15.10% in January 2026 from 15.15% in December, marking the tenth consecutive monthly decline. Meanwhile, policymakers retained key monetary parameters. The asymmetric corridor was kept at +50/-450 basis points around the policy rate, while the Cash Reserve Ratio remained at 45% for Deposit Money Banks and 16% for Merchant Banks. The liquidity ratio was unchanged at 30%.
2026-02-24
Nigeria Retains Key Policy Rate at 27%
The Central Bank of Nigeria maintained its benchmark rate at 27% on November 25, 2025, following a 50 bps cut in September, saying the pause was necessary to maintain the progress achieved in ensuring low and stable inflation. Governor Cardoso said the Committee decided by a majority vote to maintain the current policy stance, suggesting that members were not yet convinced economic conditions justified another cut. Policymakers welcomed the continued slowdown in headline inflation, supported by sustained monetary tightening and a more stable exchange rate, but noted it remains high, requiring further policy efforts. Nigeria’s annual inflation rate fell for the seventh straight month to 16.05% in October 2025, the softest since March 2022, from 18.02% in the prior month. The central bank also kept all other rates unchanged but adjusted the corridor around the MPR at +50-450% from +250-250% in September 2025.
2025-11-25
Nigeria Cuts Key Policy Rate for 1st Time since 2020
The Central Bank of Nigeria lowered its benchmark rate by 50 bps to 27% on September 23, 2025, the first cut since September 2020, following three meetings of no change. Slowing inflation and naira's recent strength prompted the decision, with the goal of supporting economic growth. Nigeria’s annual inflation rate eased for the fifth month to 20.12% in August 2025, marking the softest reading since July 2022. Meanwhile, the economy expanded by 4.23% year-on-year in Q2 2025, the strongest pace of growth since Q2 2021, from 3.13% in the previous period.
2025-09-23