The Central Bank of Nigeria (CBN) has retained the country’s benchmark interest rate at 26.5 per cent amid renewed inflationary pressure and growing global economic uncertainties.
Governor of the apex bank, Olayemi Cardoso, announced the decision on Wednesday at the end of the Monetary Policy Committee’s 305th meeting held in Abuja.
The MPC resolved to keep the Monetary Policy Rate unchanged despite a recent rise in inflation figures released by the National Bureau of Statistics.
“The Committee’s decision is as follows: retain the monetary policy rate at 26.5 per cent,” Cardoso said while briefing journalists after the two-day meeting.
The latest decision follows the CBN’s 50-basis-point reduction in February 2026, when the benchmark rate was lowered from 27 per cent after several months of aggressive monetary tightening.
Cardoso explained that the committee based its decision on a broad assessment of both domestic and global economic risks, noting that recent inflationary increases were largely driven by external factors.
“The MPC recognises the transitory nature of the inflation increase and remains confident that the current macroeconomic environment is sufficiently robust to support a return to disinflation,” he said.
The committee also reviewed other key monetary policy parameters.
It retained the asymmetric corridor around the MPR at +50/-450 basis points and left the Cash Reserve Ratio for commercial banks unchanged at 45 per cent, while merchant banks retained a 16 per cent CRR.
The MPC equally maintained the 75 per cent CRR on non-Treasury Single Account public sector deposits for liquidity management purposes.
Nigeria’s inflation rate rose to 15.69 per cent in April 2026 from 15.38 per cent in March, according to the latest Consumer Price Index report released by the NBS.
The increase marked the second consecutive monthly rise in inflation after the rate stood at 15.06 per cent in February.
Economic analysts have attributed the inflationary pressure to rising fuel costs and global geopolitical tensions involving the United States, Israel and Iran, which have affected international crude oil supply routes and pushed up energy prices.
The disruption of oil shipments through the Strait of Hormuz has contributed to increased transportation and production costs globally, with spillover effects on Nigeria’s domestic market.
The CBN’s decision to maintain the current rate is expected to signal continued caution by monetary authorities as they seek to balance inflation control with economic growth and financial stability.
The MPC also maintained that existing monetary measures remain necessary to manage liquidity levels and preserve confidence in the economy.
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