CBN Retains 27.5% Interest Rate, Confirms Eight Banks Meet New Capital Requirements

The Central Bank of Nigeria (CBN) has opted to maintain its Monetary Policy Rate (MPR) at 27.5 percent, citing ongoing inflationary pressures and global economic uncertainties. CBN Governor Olayemi Cardoso announced the decision at the conclusion of the 101st Monetary Policy Committee (MPC) meeting held in Abuja.

Cardoso explained that the committee resolved to keep all policy parameters unchanged to sustain the current disinflationary trend and contain price surges. The asymmetric corridor around the MPR remains at +500/-100 basis points, the Cash Reserve Ratio (CRR) is retained at 50 percent for deposit money banks and 16 percent for merchant banks, while the Liquidity Ratio holds at 30 percent across all banking institutions.

He noted that headline inflation had decelerated for the third consecutive month as of June 2025, driven by lower energy costs and a more stable foreign exchange market. However, a rise in month-on-month inflation indicates that underlying price pressures still persist, amplified by global risks such as ongoing tariff conflicts and geopolitical instability.

Governor Cardoso also revealed that Nigeria’s foreign reserves stood at $40.1 billion as of July 18, offering about nine and a half months of import cover. He confirmed that eight banks have already met the new minimum capital requirements under the ongoing recapitalization drive, while others are progressing toward the deadline. The CBN pledged to maintain strict oversight to safeguard the resilience and soundness of the financial system.

Additionally, the MPC encouraged the government to ensure timely distribution of agricultural inputs such as high-yield seeds and fertilizers for the current planting season. The committee also acknowledged gains in the foreign exchange market and GDP growth, which reached 3.13% in Q1 2025, compared to 2.27% and 3.38% in the same and previous quarters of 2024, respectively. Despite positive economic indicators, the CBN warned that global developments could continue to impact import prices and supply chain dynamics.