- CBN retains monetary policy rate (MPR) at 27.5% after 300th MPC meeting
- Foreign reserves rise to $38.9bn as of May 16 — a 2.85% increase
- MPC observes improvements in macroeconomic indicators, urges continued reforms
The Central Bank of Nigeria (CBN) has maintained the Monetary Policy Rate (MPR) at 27.5 percent following its 300th Monetary Policy Committee (MPC) meeting in Abuja.
Olayemi Cardoso, CBN Governor, announced the committee’s unanimous decision at a press conference on Tuesday, stating that the members opted to hold the rate steady to better assess near-term economic developments.
In addition to retaining the MPR, the MPC also left the Cash Reserve Ratio (CRR) unchanged at 50 percent and the Liquidity Ratio at 30 percent.
“MPC noted the relative improvements in some key macroeconomic indicators expected to support the overall moderation in crisis in the near to medium term,” Cardoso said.
These include the narrowing gap in the foreign exchange market, improved balance of payments, and lower fuel prices.
Cardoso said the committee welcomed the gradual easing of food inflation, praising government efforts to enhance food supply and combat insecurity in farming areas. “The committee thus encouraged security agencies to sustain the momentum while the government provides necessary inputs to farmers,” he added.
Despite the progress, the committee acknowledged persistent inflationary pressures driven by high energy costs, foreign exchange demand, and structural challenges.
To address these concerns, the MPC commended government policies aimed at boosting local production and curbing forex demand, urging continued reforms to reinforce confidence in the foreign exchange market.
Foreign reserves rise to $38.90bn in May
Cardoso also disclosed that Nigeria’s gross external reserves climbed to $38.90 billion as of May 16 — a 2.85 percent increase from $37.82 billion recorded in March 2025.
“This represents an import cover of six months for goods and services,” he said.
He added that the country recorded a $1.10 billion surplus in its balance of payments in Q4 2024, down from $4.21 billion in the previous quarter, reflecting recent fiscal and monetary efforts to stabilize the economy.
The MPC urged the federal government to intensify efforts to boost foreign exchange earnings, especially from oil and non-oil exports, as both sectors begin to yield encouraging results.
Beyond increasing MPR, how else can CBN tame inflation?
Meanwhile, TheRadar reported that at its 296th Monetary Policy Committee (MPC) meeting, the Central Bank of Nigeria (CBN) increased the Monetary Policy Rate (MPR) by 50 basis points to 26.75 per cent from the May rate of 26.25 per cent to tame inflation.
TheRadar then highlighted other ways the apex bank could tackle inflation beyond increasing interest rates, which some Nigerians describe as ‘textbook economics.’
