By Emma Ujah, Abuja Bureau Chief

The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR) at 27.5%, citing the need to monitor global economic uncertainties before adjusting key monetary tools.

CBN Governor Olayemi Cardoso made this known at the conclusion of the 300th Monetary Policy Committee (MPC) meeting held at the bank’s headquarters in Abuja on Tuesday.

“The Committee was unanimous in its decision to hold policy,” Cardoso said.

Key MPC Decisions:

Monetary Policy Rate (MPR): Retained at 27.5%

Asymmetric corridor: Maintained at +500/-100 basis points around the MPR

Cash Reserve Ratio (CRR): Retained at 50% for Deposit Money Banks, and 16% for Merchant Banks

Liquidity Ratio: Retained at 30%

According to the CBN governor, the MPC observed improvements in macroeconomic indicators, which influenced the decision to hold the MPR steady. These include:

A narrowing gap between official and parallel exchange rates

A positive balance of payments position

Easing fuel prices

Progress in food inflation control through increased food supply and better security in farming communities

Despite these positives, Cardoso noted persistent inflationary pressures due to high electricity tariffs, sustained foreign exchange demand, and structural economic challenges.

Cardoso emphasized the need to boost Nigeria’s foreign exchange earnings through oil, gas, and non-oil exports. He encouraged domestic refineries like Dangote Refinery to scale up output and begin exporting petroleum products to neighbouring countries.

The MPC expressed concern over declining crude oil prices due to rising output from non-OPEC members and U.S. trade policy uncertainties. These, the committee warned, could threaten the implementation of the 2025 national budget.

Cardoso highlighted ongoing efforts to improve inward remittances through the Non-Resident Bank Verification Number (NRBVN) platform. He said the CBN had successfully engaged with International Money Transfer Operators (IMTOs) and diaspora Nigerians, leading to increased bank participation and innovative products to attract remittances.

The CBN governor explained that the decision to publish the apex bank’s financial report was driven by the need to build public confidence through transparency.

“In 2023, the CBN recorded an operational loss of ₦1 trillion. However, by the end of 2024, the figure had drastically fallen,” he said.

Cardoso reaffirmed the CBN’s role as the custodian of financial stability, pledging to take all necessary steps to ensure a stable and resilient economy that supports long-term growth.

“We are determined to run the Central Bank in a transparent and accountable manner,” he concluded.