The Central Bank of Nigeria’s Monetary Policy Committee has voted to keep the Monetary Policy Rate unchanged at 26.5%, following its 305th meeting held on May 19 and 20, 2026, attended by all 11 members.
Announcing the decision, CBN Governor Olayemi Cardoso said the committee retained the Standing Facilities Corridor around the MPR at +50/-450 basis points, while all other key policy parameters remained unchanged.
The Cash Reserve Requirement for Deposit Money Banks stays at 45%, Merchant Banks at 16%, and 75% for non-TSA public sector deposits.
The decision to hold rates was driven by persistent inflationary pressures and the need to sustain macroeconomic stability. This comes as Nigeria’s headline inflation rose marginally to 15.69% in April 2026, up from 15.38% in March — a 0.31 percentage point increase, according to the National Bureau of Statistics Consumer Price Index report.
The MPC noted the back-to-back inflation increases recorded in March and April, signalling continued caution in its approach to monetary policy.
The current rate follows a 50 basis point cut at the MPC’s 304th meeting in February 2026, when the MPR was reduced from 27% to 26.5% — the first rate reduction after a prolonged tightening cycle.
The CBN’s latest decision reflects its ongoing effort to balance inflation control with exchange-rate stability and broader economic recovery, while keeping a close eye on the impact of high borrowing costs on businesses and growth.
