The Central Bank of Nigeria (CBN) has delayed its first Monetary Policy Committee (MPC) meeting for 2025 until March due to the delayed release of the rebased Consumer Price Index (CPI) report. Initially set for February 17-18, the meeting was postponed as policymakers wait for updated inflation data. Sources within the CBN stated that the absence of current inflation figures made it challenging to make informed policy decisions. The meeting was initially rescheduled from January to February to accommodate the release of economic data, but further delays have pushed it to March.
The rebasing of Nigeria’s CPI, which aims to reflect more accurate inflation trends, has not yet been completed. The National Bureau of Statistics (NBS) had initially planned to release the updated figures in January, but the rebased CPI report remains unavailable. This delay has created a situation where the CBN would not have sufficient data to guide its decision-making at the originally scheduled February MPC meeting. The rebased CPI, which incorporates changes in consumer spending patterns, is expected to provide a more accurate measure of inflation, but this update has yet to be finalized.
The delay in receiving updated CPI data could have a significant impact on the formulation of monetary policy in Nigeria. The CBN heavily relies on inflation trends to guide its decisions during the MPC meetings. Without the latest CPI report, the CBN may struggle to make informed decisions on interest rates, exchange rates, and other economic policies. Policymakers are now considering March as a more suitable time to meet and discuss the issues at hand, ensuring that they have access to the most up-to-date and accurate data before making decisions.
This delay marks the second time under the leadership of CBN Governor Olayemi Cardoso that the MPC meeting has been postponed. After his appointment in September 2023, Cardoso’s first MPC meeting was also delayed. Analysts and investors are awaiting action from the new governor to address Nigeria’s ongoing inflation issues, and the delay in meeting further fuels concerns about the timely implementation of economic policies. Cardoso’s leadership is under scrutiny as he navigates the economic challenges, including inflation, that continue to impact the country.
The postponed MPC meeting reflects the broader challenge of managing Nigeria’s economic policies amid data delays and inflation concerns. As the CBN waits for updated CPI figures, there is growing concern over how such delays may affect investor confidence and market stability. The economic data, particularly on inflation and GDP, plays a crucial role in shaping fiscal strategies and addressing the challenges facing Nigeria’s economy, such as rising prices and foreign exchange volatility.
Source: Nairametrics