Nigeria Central Bank likely to keep interest rate at 26.5%

The Chartered Institute of Bankers of Nigeria (CIBN) projected that the Central Bank of Nigeria (CBN) will retain the Monetary Policy Rate (MPR) at 26.5% in the upcoming Monetary Policy Committee meeting in Abuja. CIBN President Dr. Dele Alabi said inflation has not moved enough to justify a cut, and keeping the rate steady would allow the bank to monitor evolving price pressures.

A CBN Inflation Expectations Survey showed that 61.1% of Nigerians want a rate reduction, while 27.8% prefer the current level and 11.1% support a further increase. The survey noted that businesses feel the most pressure from high borrowing costs, but households still perceive inflation as elevated. The MPR has been held at 26.5% after a series of 50‑basis‑point cuts earlier in the year, following a 875‑basis‑point rise in 2024 to curb inflation and stabilise the foreign‑exchange market.