The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate at 27.5 per cent, marking the third consecutive time in 2025 that the rate has been held steady.
The announcement was made by the CBN Governor, Olayemi Cardoso, on Tuesday following the conclusion of the 301st meeting of the Monetary Policy Committee in Abuja.
Cardoso explained that the decision to maintain the MPR was based on the need to sustain efforts in tackling inflation and stabilising prices in the face of ongoing monetary pressures. He also confirmed that the asymmetric corridor around the MPR remains at +500/-100 basis points.
In addition, the Cash Reserve Ratio was retained at 50 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, while the Liquidity Ratio was left unchanged at 30 per cent.
According to the governor, the MPC acknowledged the federal government’s commitment to improving security across the country and noted the positive impact such efforts are having on food security. He emphasized that maintaining current monetary parameters is aimed at strengthening these ongoing fiscal and monetary initiatives.
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Cardoso also revealed that eight banks have so far met the new recapitalisation requirements set by the apex bank. However, he did not disclose the names of the banks that have met the target as of the time of the announcement.
The CBN had earlier issued a 24-month deadline, starting from April 1, 2024 to March 31, 2026, for banks to meet new minimum capital requirements. Under the directive, banks with international licences are expected to have a minimum paid-up capital of N500 billion, national banks N200 billion, and regional banks N50 billion.
The central bank’s decision underscores its continued cautious approach to managing Nigeria’s monetary environment amid persistent economic challenges.