The Central Bank of Nigeria (CBN) has chosen to keep its Monetary Policy Rate (MPR) unchanged at 26.5 percent. CBN Governor Olayemi Cardoso announced this outcome following the 306th meeting of the Monetary Policy Committee held in Abuja.
Along with the MPR, the committee maintained the standing facilities corridor at +50/-450 basis points. The Cash Reserve Ratio for commercial banks remains at 45 percent, while merchant banks are held at 16 percent, and non-TSA public sector deposits are set at 75 percent. Cardoso explained that while inflation saw a slight dip in June 2026, the committee opted for caution due to rising instability in the Middle East, which could disrupt global energy prices and impact local inflation.
Despite these challenges, the economy has demonstrated resilience, and the CBN intends to use this steady policy path to evaluate future inflationary trends. Cardoso also noted that Nigeria’s external reserves have climbed to $52.5 billion, providing sufficient coverage for nine months of imports. Addressing the banking sector, the Governor confirmed that regulatory forbearance has ended, marking a return to standard operational requirements. Finally, he emphasized the bank’s commitment to a transparent foreign exchange market, highlighting that daily turnover has reached over $1 billion.
