The Central Bank of Nigeria (CBN) has once again retained the Monetary Policy Rate (MPR) at 27.5%, marking the third consecutive time the rate has been maintained in 2025. The decision was announced by the CBN Governor, Olayemi Cardoso, following the conclusion of the 301st Monetary Policy Committee (MPC) meeting held on Tuesday in Abuja.

Cardoso emphasized that the decision aligns with the apex bank’s efforts to curb inflationary pressures, stabilize the financial market, and ensure price stability across key sectors of the economy.


According to Cardoso, the MPC unanimously voted to maintain the following key parameters:

Monetary Policy Rate (MPR): 27.5%

Asymmetric corridor: +500/-100 basis points around the MPR

Cash Reserve Ratio (CRR): 50% for deposit money banks, 16% for merchant banks

Liquidity Ratio: 30%


The CBN governor noted that retaining these rates was crucial given emerging monetary and fiscal pressures, stressing that relaxing the rates too early could reverse gains made in controlling inflation.

“The decision was premised on sustaining efforts to tackle inflation and ensuring exchange rate stability while also safeguarding food security,” Cardoso stated.


Cardoso commended the Federal Government’s ongoing security interventions, particularly in agrarian communities, which he said are improving food production and easing food-driven inflation.

Despite these efforts, Nigeria’s inflation rate, which hit 31.2% in June 2025 (according to the National Bureau of Statistics), remains one of the highest in West Africa, driven largely by food prices, foreign exchange volatility, and global crude oil market fluctuations.

The CBN’s tight monetary stance, therefore, is seen as a necessary tool to rein in inflationary trends, even as concerns persist that high-interest rates could limit credit access for small and medium-scale enterprises (SMEs).

In a related development, Cardoso disclosed that eight commercial banks have successfully met the new recapitalization requirements set by the CBN, although he withheld their names. The recapitalization mandate, announced in 2024, requires:

International banks: Minimum N500 billion capital

National banks: Minimum N200 billion capital

Regional banks: Minimum N50 billion capital


The deadline for compliance remains March 31, 2026.

Cardoso reassured stakeholders that the recapitalization exercise is designed to strengthen the resilience of Nigeria’s banking sector, improve risk management, and support large-scale financing of critical infrastructure.


Financial analysts have largely described the MPC’s decision as expected, given the current inflationary and foreign exchange challenges. Retaining the MPR, they say, signals the CBN’s commitment to its inflation-targeting framework while ensuring investor confidence in Nigeria’s financial market.

However, some experts argue that sustained high-interest rates could dampen economic growth, especially as businesses face rising operational costs. They have called for complementary fiscal measures, such as targeted subsidies for farmers and improved energy infrastructure, to reduce production costs and ease inflationary pressures.

The CBN, on its part, maintains that its monetary policy stance will be continually reviewed in line with evolving economic indicators.

For consumers and businesses, the decision to keep the interest rate at 27.5% means borrowing costs will remain high, making loans and credit facilities more expensive. However, it is expected to help stabilize the naira, attract foreign investment, and gradually reduce inflationary pressures in the coming months.

With the next MPC meeting scheduled for September 2025, all eyes will be on key economic indicators, particularly inflation and exchange rate movements, to determine whether the CBN will maintain, tighten, or ease its current stance.