CBN Holds Benchmark Interest Rate as MPC Maintains 27% to Sustain Disinflation

The Central Bank of Nigeria closed its November MPC meeting on 24 25 November 2025 with a decision that instantly set the tone for the markets: the Monetary Policy Rate stays at 27.0 percent. It was not a surprise, but it was a signal that the Bank is choosing stability over experimentation as the economy works its way through a delicate but encouraging disinflation phase. Headline inflation slowed to 16.05 percent in October, marking seven straight months of downward movement and giving the Bank enough confidence to hold its line.

Behind the numbers, a clearer picture is forming. The foreign exchange market has been calmer, food supply is improving, fuel prices have stopped sending unnecessary shocks through the system, and the earlier tightening wave has finally begun to deliver visible effects. These factors combined helped the MPC decide that changing course now would introduce more risk than reward.

Nigeria’s external sector also offered the MPC some breathing room. Gross external reserves climbed to 46.70 billion dollars as of 14 November which is a jump from 42.77 billion dollars at the end of September,  giving the country roughly 10.3 months of import cover. The Bank pointed to rising capital inflows and a stronger current account position as part of the foundation for this improvement. With reserves at their highest levels in months, the Bank had more confidence to keep its policy posture steady.

Although the benchmark rate was retained, the MPC adjusted the standing facility corridor to plus 50 and minus 450 basis points around the 27 percent MPR, a recalibration designed to influence the way banks manage short term liquidity. Other levers stayed untouched, including the Cash Reserve Requirement 45 percent for Deposit Money Banks, 16 percent for merchant banks, and 75 percent on non TSA public sector deposits as well as the 30 percent Liquidity Ratio.

One of the notable updates from the meeting came from the recapitalization front. Sixteen banks have now met the required thresholds under the ongoing reform, a milestone the CBN described as essential for strengthening financial system resilience and reinforcing the broader monetary policy architecture. With the banking sector moving into stronger territory, the MPC argued that a stable policy environment remains the best way to protect the gains already achieved. The Committee closed with its usual caution. Inflation may be falling, but it is still high enough to demand discipline. The Bank was clear: no rushed moves, no guessing, and no premature easing. Instead, it is sticking with a data driven approach that allows the current measures to run their course while watching for clearer signals from both domestic and global conditions