Citizenship News
The Central Bank of Nigeria (CBN) in its 30th Monetary Policy Committee (MPC) meeting held on 20 and 21 July 2026, decided to retain the Monetary Policy Rate (MPR) at 26.5%, the Standing Facilities Corridor around the MPR at +50/-450 basis points, the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45%, for Merchant Banks at 16%, and non TSA public sector deposits at 75%.
The Committee maintained a cautious monetary policy stance, despite a marginal moderation in headline inflation in June 2026, citing global uncertainties due to renewed hostilities in the Middle East.
This is according to a July 31 report of the Nigerian Economic Update.
The MPC noted the risk of pass-through to domestic inflation from spillovers to global energy prices due to the conflict, while acknowledging the Nigerian economy’s resilience to external shocks.
By retaining the MPR, the CBN signalled continued restraint on liquidity and credit growth to consolidate disinflation and exchange rate stability, even though this may keep lending rates high in the near term. By holding the policy rate, the CBN signalled that it is waiting for clearer signs of price stability before easing rates.
To further bolster the economy against external shocks, alongside maintaining stable prices, the CBN should boost external reserves by improving FX market transparency and liquidity to reduce volatility, strengthen prudential supervision to ensure banks maintain adequate capital and liquidity buffers, and coordinate with fiscal authorities to align monetary and fiscal actions in support of macroeconomic stability.
Furthermore, targeted grants for local production are needed to reduce production costs and, in turn, lower prices.
