Rising from its 305th Monetary Policy Committee (MPC), the Central Bank of Nigeria (CBN) retained the Monetary Policy Rate (MPR) at 26.5%, alongside all other monetary parameters, reflecting a cautious and forward-looking approach aimed at sustaining macroeconomic stability and anchoring inflation expectations.
CBN Governor, Olayemi Cardoso, noted that Nigeria’s economy remains resilient, with Q4 2025 GDP growth reaching 4.0%, driven by stronger industrial and agricultural output, as well as improved performance across ICT, transport, and storage sectors.
The Committee highlighted major gains across the economy, including:
- Improved exchange rate stability
- Stronger external reserves now at $49.49 billion
- Over 9 months import cover
- Enhanced monetary policy transmission
- Fiscal consolidation efforts
- A more resilient banking sector
The MPC also welcomed Nigeria’s sovereign rating upgrade, describing it as evidence of improving macroeconomic fundamentals and growing confidence in the country’s reform agenda.
On the financial sector, the successful banking recapitalisation exercise led to the emergence of 33 stronger banks with improved financial soundness, positioning the sector to better support economic growth and stability.
Governor Cardoso reaffirmed the CBN’s commitment to ongoing reforms, transparency in the FX market, consumer protection, and SME growth. He also noted that Nigeria’s foreign exchange market has become deeper and more transparent, with daily turnover rising from about $100 million previously to an average of $500 million, sometimes peaking at $1 billion.
The MPC projects continued resilience in Nigeria’s economy in 2026, supported by policy reforms, FX stability, and improving food supply conditions expected to drive disinflation.
