The interest rate was lowered by 50 basis points, from 27.5% in July to 27.5% now, by the Monetary Policy Committee of the Central Bank of Nigeria.
Addressing newsmen, CBN Governor, Olayemi Cardoso, said the decision of the committee was to lower the monetary policy rate was predicated on the sustained disinflation recorded in the past five months.
The CBN’s cautious attitude to market volatility was indicated by the retention of the asymmetric corridor around the MPR at +260 and -250 basis points, which served as a framework for managing liquidity.
It also cut commercial banks’ cash reserve requirements to 45% while keeping merchant banks’ reserves at 16%.
The Committee has also imposed a 75% cash reserve requirement on non-TSA public sector deposits to improve liquidity management.
To increase the efficiency of the bank market and strengthen monetary policy transmission, the MPC altered the standing facilities corridor.
The liquidity ratio has remained steady at 30%.
Nigeria’s GDP increased by 4.23 percent year on year in the second quarter of 2025, according to figures provided by the National Bureau of Statistics (NBS) on Monday.
According to the research, the agriculture industry grew by 2.82 percent in real terms during the period under review, up from 2.6 percent in the second quarter of 2024
