Nigeria’s Central Bank Holds Rate at 26.50% Despite Heightened Disruptions

By Adedapo Adesanya

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the headline interest rate, the Monetary Policy Rate (MPR), at 26.50 per cent.

This was disclosed by the Governor of Nigeria’s central bank, Mr Yemi Cardoso, on Wednesday, after the conclusion of the MPC meeting. He noted that the decision was hinged on Nigeria being largely insulated from external shocks relating to developments in the Middle East.

He also acknowledged that inflation and exchange rate stability were put into consideration during the two-day meeting.

The committee reduced the benchmark interest rate by 50 basis points from 27.0 per cent to 26.5 per cent at its 304th MPC gathering in February.

Nigeria’s inflation rose to 15.69 per cent in April 2026, affected by the fallout from the Iran war, which continued to impact the global economy. Noting that year-on-year, the figures show a moderation rather than worry.

The headline inflation rate for April on a month-on-month basis was 2.13 per cent, while the food inflation rate in the review month was 16.06 per cent on a year-on-year basis.

Mr Cardoso noted that the Cash Reserve Ratio (CRR) was also retained at 45 per cent for commercial Banks, 16 per cent for Merchant Banks, and 75 per cent for non-TSA public sector deposits.

He added that the Standing Facilities Corridor was also held flat at +50 / -450 basis points around the MPR.