Nigeria Interest Rate2007-2021 Data | 2022-2023 Forecast | Calendar | Historical

The Central Bank of Nigeria voted unanimously to leave its monetary policy rate unchanged at 11.5% during its September of 2021 meeting. The decision came against the backdrop of decelerating inflation and is aimed at supporting the domestic economic recovery. Policymakers noted that Nigeria's annual inflation eased for a fifth straight month to 17.01% in August after the pace of food price growth slowed. Meanwhile, the country's GDP expanded by 5% from a year earlier in the second quarter of 2021, the strongest growth since the last quarter of 2014. Still, the Bank cut its growth projections to 2.86% in 2021, down from a forecast of 3.15% in July and compared with the International Monetary Fund’s 2.5% prediction.

The Central Bank of Nigeria voted unanimously to leave its monetary policy rate unchanged at 11.5% during its May 2021 meeting, as widely expected. The move is expected to allow further economic growth, despite persistent inflationary pressures, after the country exited recession last year. Nigeria's annual inflation rate declined slightly to 18.12% in April 2021 from 18.17% in March, but remained well above the central bank's target range of 6-9%, continuing a trend that began in 2015. Meanwhile, latest data showed Nigeria's economy advanced by just 0.5% in the first three months of 2021, slightly faster than a 0.1% rise in the last quarter of 2020, suggesting a slow recovery.

The Central Bank of Nigeria left its monetary policy rate unchanged at 11.5% during its March 2021 meeting, to help to consolidate the country's recovery process despite intensifying inflationary pressures. Headline inflation hit a four-year high of 17.33% in February, as a result of persistent insecurity caused by rising kidnappings and conflicts between farmers and cattle herders, upward foreign exchange adjustments, ports congestion, and Covid-19-induced supply chain disruptions. Meantime, the GDP increased 0.1% year-on-year in the fourth quarter of 2020, the first expansion in the last three quarters, helped by the gradual return of economic activities following the easing of coronavirus restrictions. Governor Emefiele also addressed reports Nigeria is unifying its foreign exchange rates, having denied that the country is adopting a new foreign exchange management policy.

The Central Bank of Nigeria left its monetary policy rate unchanged at 11.5% during its January 2021 meeting. Policymakers were again confronted with a policy dilemma as to whether to aggressively combat the inflationary pressure or support measures currently aimed at stimulating growth and reversing the recession. Although the economy is currently in a stagflation environment with simultaneous occurrence of inflationary pressures and contracting output, the Committee resolved to reverse both developments and continue pursuing price stability while stimulating growth. In December, headline inflation climbed further to an over three-year high of 15.75%, mainly linked to dollar shortages and surging jihadist attacks in farming areas as well as lingering disruptions from the COVID-19 pandemic. At the same time, Nigeria slipped into its second recession in four years in the third quarter of 2020, amid the twin impact of COVID-19 restrictions and low oil prices.