The Monetary Policy Committee of the Central Bank of Nigeria left the Monetary Policy Rate at 26.5 % on 20 May 2026, judging that the recent, externally induced rise in headline inflation is temporary and that prior reforms have kept the macroeconomic environment sufficiently robust to support a return to disinflation while anchoring expectations. After cutting the MPR by 50 bp in February 2026 and by 50 bp in September 2025, the Committee has now paused, maintaining a cumulative 100 bp easing from 27.5 % a year earlier. It also retained the standing-facilities corridor at +50/-450 bp around the MPR and left cash-reserve requirements unchanged at 45 % for deposit money banks, 16 % for merchant banks and 75 % on non-TSA public deposits. Year-on-year headline inflation edged up to 15.69 % in April from 15.38 % in March as food prices quickened, although core inflation eased to 15.86 %, the 12-month average fell to 19.16 % and monthly price growth decelerated sharply to 2.13 %. Real GDP expanded by 4.07 % y/y in Q4 2025, supported by both industry and agriculture, while the recent completion of a recapitalisation drive has produced 33 better-capitalised banks. Foreign-exchange reserves rose to USD 49.49 bn on 15 May 2026, providing 9.0 months of import cover and underpinning exchange-rate stability. The MPC flagged the Middle East conflict’s upward pressure on global energy costs and noted that many central banks are adopting a data-dependent stance amid higher global inflation.
Central Bank of Nigeria2026-05-20
Central Bank of Nigeria keeps Monetary Policy Rate unchanged at 26.5 %
Central Bank of Nigeria’s Monetary Policy Committee on 20 May kept the Monetary Policy Rate at 26.5 %, leaving the ±50/–450 bp corridor and cash-reserve ratios unchanged, after a cumulative 100 bp cut since September 2025. It said April’s food-driven uptick in headline inflation to 15.69 % is temporary and that robust reserves and prior reforms support a cautious, data-dependent path to renewed disinflation.