The Central Bank of Nigeria (CBN) has decided to keep the key interest rate at 27.50% following its latest Monetary Policy Committee (MPC) meeting held on May 19 and 20, 2025.
This decision follows the same path set during its February 2025 meeting, where the Monetary Policy Rate (MPR) was also retained at 27.50%.
CBN Governor Olayemi Cardoso announced the decision and said all other economic indicators remain unchanged.
He said the asymmetric corridor stays at +500/-100 basis points. Deposit Money Banks’ Cash Reserve Ratio remains 50%, while Merchant Banks keep theirs at 16%. The Liquidity Ratio remains at 30%.
Inflation Slightly Drops, Food Prices Ease
Governor Cardoso also shared new inflation figures released by the National Bureau of Statistics (NBS).
According to the NBS, Nigeria’s inflation rate fell to 23.71% in April 2025, down from 24.23% in March.
Food inflation also declined slightly to 21.26% from 21.79% in the previous month. Prices for major staples like maize, yam, and wheat have dropped.
Cardoso said, “The MPC encourages security agencies to sustain the momentum while the government provides necessary protection to farmers to further boost local food production.”
He commended the government’s efforts in boosting food supply and improving security in farming areas.
MPC Notes Pressure from Electricity and Forex Market
Despite progress, the MPC admitted that inflation remains under pressure due to high electricity tariffs, strong demand for foreign currency, and ongoing structural problems in the economy.
Cardoso noted that the Federal Government has introduced fresh policies aimed at increasing local production, reducing forex demand, and controlling price increases.
He stated, “Given the relative stability in the foreign exchange market, members urge the bank to sustain the implementation of the ongoing reforms to further boost the economy.”
CBN Reassures Public on Banking Sector Safety
In a related development, the CBN has dismissed false reports circulating online about the operations of a licensed financial institution.
In a press release, the bank assured Nigerians that the country’s banking sector remains stable, safe, and well-regulated.
“The attention of the Central Bank of Nigeria (CBN) has been drawn to certain publications and social media reports containing misleading information regarding the operations of a regulated financial institution,” the statement said.
The Acting Director of Corporate Communications, Hakama Sidi Ali, noted that the public has no reason to fear.
“There is no cause for concern regarding the safety of depositors’ funds,” she added.
The CBN said it has early warning systems and risk-based supervision frameworks in place to identify and fix problems quickly.
“We urge the public to disregard sensational or unverified claims and rely solely on official channels for information about the financial system,” the statement concluded.
CBN reaffirmed its commitment to keeping Nigeria’s financial system secure and depositors’ funds safe.
There had been speculation regarding Fidelity Bank and its financial stability due to a viral report claiming the bank was ordered to pay ₦225 billion in damages related to a long-standing legal dispute inherited from a defunct institution.
However, the Central Bank reassurance, while not mentioning any bank by name, suggests there is no cause for alarm.
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