Monetary Policy Rate stays at 27% and CRR at 45%

The Monetary Policy Committee (MPC) held its 303rd meeting on 24th –25th November 2025, with all 12 members in attendance. The Committee decided by a majority vote to maintain the current monetary policy rate at 27% which was in line with our forecast. The decision reflects a cautious stance being maintained as the MPC wishes to sustain the progress that has been made so far towards realising low and stable inflation in the economy. The MPC reaffirmed its commitment
to a data driven assessment of market developments in guiding future policy decisions.

Highlights from the MPC Press Conference

• The MPC retained Monetary Policy Rate by at 27.00%

• The asymmetric corridor around the MPR was adjusted to +50bps / -450bps from +250bps/-250bps

• Cash Reserve Ratio for Deposit Money Banks was retained at 45.00%

• CRR for Merchant Banks was retained at 16.00%.

• CRR on Non-TSA (Treasury Single Account) Public Sector deposits was maintained at 75%.

• Liquidity ratio retained at 30.00%.

Committee’s Rationale

✓ Inflation: The Committee noted the seventh consecutive month of headline inflation easing, reflecting the lagged
impact of earlier monetary tightening, increased exchange rate stability, stronger capital inflows, and a surplus in the
current account. Moreover, relative stability in Premium Motor Spirit (PMS) prices and an increase in food supply has
further supported the current disinflation trend. However, with headline inflation still firmly in double-digit territory,
the Committee emphasized that sustained and coordinated policy actions remain essential to achieving a more
sustained moderation in price inflation.

✓ External Sector: The Committee noted that the strong performance of the external sector, reflected in a continued
current account surplus and steady accretion in reserves, which strengthened by 9.19% to US$46.70bn (14 November
2025) from US$42.77bn, and now provides 10.3 months of import cover.

✓ Monetary–Fiscal Coordination: The MPC commended the collaborative efforts of both monetary and fiscal
authorities, which contributed to the recent upgrade of Nigeria’s sovereign credit rating by a major rating agency and
the country’s removal from the FATF grey list. The permanent secretary of the Federal Ministry of Finance is now a
member of the MPC to enhance this growing coordination.

✓ Investor’s Confidence: The Committee acknowledged that these positive developments are likely to further
strengthen investor confidence and increase capital inflows into the economy.

✓ Banking System Stability: The Committee expressed satisfaction with the sustained resilience of the banking system,
noting that key financial soundness indicators remain within regulatory thresholds.

✓ Recapitalization Progress: Members also noted significant progress in the ongoing recapitalization program, with 16
banks now fully compliant with the revised capital requirements. The Committee urged the CBN to ensure the
effective implementation and timely completion of the program.

Policy Outlook

The Committee expects that the lagged impact of the previous tightening to continue to have an impact in the medium
term, therefore, MPC reaffirmed its commitment to data-driven monetary policy decision making, with a focus on
sustaining disinflation and financial stability. Although inflationary pressures continue to ease, however seasonal demand
boosts associated with the festive period could slow the pace of deceleration in inflationary pressure while the start of
2026 could see the impact of the base effects fully unwound on the inflation rate.