The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, from 27.5 percent to 27 percent.
The decision was announced by CBN Governor, Mr. Olayemi Cardoso, during a press briefing at the end of the Monetary Policy Committee (MPC) meeting in Abuja.
The Committee also made several other key decisions:
Adjusted the standing facilities corridor around the MPR to +250/-250 basis points
Raised the Cash Reserve Requirement (CRR) for commercial banks to 45%, while retaining that of merchant banks at 16%
Introduced a 75% CRR on non-TSA public sector deposits
Retained the Liquidity Ratio at 30%
According to Mr. Cardoso, the decision to lower the policy rate was driven by sustained disinflation over the past five months, projected declines in inflation through the remainder of 2025, and the need to strengthen economic recovery efforts.
The adjustment of the standing facilities corridor was aimed at improving the efficiency of the interbank market and enhancing monetary policy transmission.
