The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) by 25 basis points to 27.50%, marking the sixth consecutive hike under Governor Yemi Cardoso’s leadership. The decision, announced at the 298th Monetary Policy Committee (MPC) meeting, aims to curb rising inflation and stabilize the economy. Other monetary policy parameters, including the Cash Reserve Ratio and Liquidity Ratio, were left unchanged. Cardoso highlighted that these measures, though stringent, are necessary to achieve long-term economic stability.
Economic analysts welcomed the marginal rate increase, predicting a pause in further hikes by early 2025 to mitigate the strain on small businesses and credit access. Ahead of the festive season, the CBN assured sufficient cash availability, addressing concerns about potential shortages. Cardoso also reiterated the bank’s commitment to orthodox monetary policies, projecting visible progress in inflation control by the first quarter of 2025 through collaboration with agencies to resolve supply and infrastructure challenges.
Addressing foreign exchange concerns, Cardoso noted rising foreign reserves and diaspora remittances as positive outcomes of policy adjustments. He introduced the Non-Resident Account Program to simplify remittances for Nigerians abroad and emphasized the importance of local production to strengthen the naira. Additionally, financial inclusion efforts have reached 95% of the adult population, with a focus on empowering underserved groups like women and MSMEs to drive sustainable economic growth.
