Central Bank of Nigeria retains MPR at 26.5%

The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), also known as the benchmark interest rate, at 26.5 per cent.

CBN Governor Olayemi Cardoso announced the decision on Tuesday, following the conclusion of the 306th Monetary Policy Committee (MPC) meeting held in Abuja from July 20 to July 21.

“The committee decided as follows: retain the monetary policy rate at 26.5 per cent,” Mr Cardoso said at the MPC briefing.

This decision marks the second consecutive retention of the MPR at 26.5 per cent, following a 50-basis-point reduction in February from 27 per cent.

“The committee’s decision to maintain the current policy stand follows a thorough assessment of the balance of risk. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due mainly to the renewed hostilities in the Middle East,” Cardoso said.

The MPC also adjusted the asymmetric facilities corridor around the MPR to +50/-450 basis points—a move aimed at discouraging banks from keeping idle funds with the CBN and encouraging increased lending into the economy. Furthermore, the committee maintained the Cash Reserve Ratio (CRR) for commercial banks at 45 per cent, retained the rate for merchant banks at 16 per cent, and kept the CRR on non-TSA public-sector deposits at 75 per cent for liquidity management considerations.

Cardoso noted that despite global uncertainties, the Nigerian economy has “remained largely resilient to the external shocks”.

The move came days after the National Bureau of Statistics (NBS) announced that the country’s headline inflation dropped to 15.91 per cent in June 2026, a slight adjustment from 15.93 per cent recorded in the previous month.