Members of the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) were sharply divided at their November 2025 meeting over whether to begin easing interest rates or maintain the status quo. Out of 11 voting members, five supported a modest cut in the Monetary Policy Rate (MPR), while six preferred to keep it at 27%, reflecting a cautious approach to consolidating recent macroeconomic gains.
The CBN Governor, Olayemi Cardoso, led the majority advocating for a hold, emphasizing that maintaining current rates would reinforce disinflationary trends. Inflation had fallen to 16.05% in October, down from 18.02% in September, marking the seventh consecutive monthly decline and signaling steady progress towards price stability.
Several members, including Bala Moh’d Bello and Emem Usoro, stressed that while inflation was declining, it remained above target levels. They highlighted that Nigeria’s recent achievements, such as removal from the FATF grey list, improved sovereign credit ratings, exchange rate stability, and rising external reserves, required careful policy management. They argued that a premature rate cut could jeopardize these gains.
On the other hand, proponents of easing, including Aku Odinkemelu and Aloysius Uche Ordu, advocated for a 50-basis-point reduction to 26.5%, citing broad-based disinflation and resilient growth across non-oil sectors. They argued that improved food supply, stable exchange rates, and growing reserves provided room for a cautious policy adjustment, while still safeguarding financial stability.
Overall, the MPC’s split highlights the delicate balance between supporting economic growth and anchoring inflation expectations. While the committee ultimately opted to retain the MPR at 27%, the personal statements reveal ongoing debates on the optimal timing for rate adjustments, with attention focused on liquidity management, fiscal pressures, and upcoming political cycles.
source: Leadership