Quote from KemiK3 on May 10, 2026, 8:49 am

 

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded its two-day statutory meeting yesterday, electing to maintain the Monetary Policy Rate (MPR) at 28.5%. This decision reflects the apex bank’s cautious approach toward a sudden, albeit slight, uptick in headline inflation recorded in April. CBN Governor, Olayemi Cardoso, noted that while previous interventions had successfully stabilized the Naira, the “volatile global energy market” and seasonal food supply pressures necessitated a continued tightening of the money supply to protect the purchasing power of Nigerians.

Financial analysts had been divided on whether the CBN would signal a pivot toward a more accommodative stance. However, the committee emphasized that the “pro-growth” agenda must not come at the expense of price stability. The Governor explained that the decision to hold all other parameters constant—including the Cash Reserve Ratio (CRR) at 45% and the Liquidity Ratio at 30%—was intended to allow the effects of previous hikes to fully permeate the banking system. The CBN expressed optimism that the current trajectory would eventually lead to a single-digit inflation rate by the second quarter of 2027.

The meeting also addressed the recent fluctuations in the foreign exchange market. The MPC commended the improved transparency in the Nigerian Autonomous Foreign Exchange Market (NAFEM) but warned against speculative activities that could undermine recent gains. The Governor reiterated that the bank is working closely with the Ministry of Finance to ensure that fiscal and monetary policies are synchronized. There was a specific mention of the need to increase domestic crude oil production to boost foreign reserves, which would provide a stronger buffer for the Naira against external shocks.

Reaction from the Lagos Chamber of Commerce and Industry (LCCI) was immediate, with the group expressing concern that the high interest rates continue to stifle the growth of Small and Medium Enterprises (SMEs). While acknowledging the need to fight inflation, the LCCI argued that the cost of borrowing has become “prohibitive” for local manufacturers. In response, the CBN hinted at expanding its targeted intervention schemes for the manufacturing and agricultural sectors to provide cheaper credit facilities without triggering inflationary pressures. 

 https://www.thisdaylive.com/index.php/2026/05/10/cbn-retains-mpr-at-28-5-percent/