The Central Bank of Nigeria has kept its benchmark interest rate unchanged at 26.5 per cent, signaling continued caution as it navigates slowing inflation and rising global risks.
CBN Governor Olayemi Cardoso announced the decision on Monday at the end of the bank’s 306th Monetary Policy Committee meeting in Abuja. It is the second straight time the MPC has held the Monetary Policy Rate at 26.5 per cent. The rate was last cut by 50 basis points in February from 27 per cent.
Cardoso said the hold followed “a thorough assessment of the balance” in the economy. While headline inflation dipped slightly in June to 15.91 per cent from 15.93 per cent in May, according to the National Bureau of Statistics, the committee flagged renewed tensions in the Middle East as a fresh pressure point.
“The MPC decision followed a thorough assessment of the balance; although headline inflation moderated marginally in June 2026, it has heightened due to renewed hostilities in the Middle East,” Cardoso said.
The committee also tweaked how it manages liquidity. It narrowed the asymmetric corridor around the MPR to +50/-450 basis points to discourage banks from parking idle funds at the CBN and to push more lending into the economy.
Other key parameters were kept steady:
- Cash Reserve Ratio for commercial banks: 45 per cent
- CRR for merchant banks: 16 per cent
- CRR on non-TSA public sector deposits: 75 per cent
Inflation in Nigeria had climbed for three months straight from March to May, driven in part by higher global oil prices after the Middle East conflict escalated in February. A brief ceasefire helped ease prices in June, but renewed hostilities involving the U.S. and Iran and renewed concerns around the Strait of Hormuz have put that relief at risk.
The CBN said it will keep monitoring both domestic and external developments as it decides the next move on rates.
