The Central Bank of Nigeria (CBN) is working to bring inflation down to a single digit in the next few years. This follows the recent rebasing of the Consumer Price Index (CPI), which lowered inflation to 24.48%. CBN Governor, Dr. Olayemi Cardoso, spoke after the first Monetary Policy Committee (MPC) meeting of 2025, reaffirming the bank’s commitment to traditional monetary policies. He noted that inflation is gradually declining and that the bank will continue analyzing data before making further comparisons.
The MPC decided to keep key monetary policy rates unchanged, including: Monetary Policy Rate (MPR): 27.50%, Cash Reserve Ratio (CRR): 50% for Deposit Money Banks, 16% for Merchant Banks, Liquidity Ratio: 30%
Cardoso emphasized that inflation is easing due to foreign exchange stability and a reduced gap between official and parallel market rates. He highlighted the importance of collaboration between monetary and fiscal authorities to sustain economic improvements.
He also noted that Nigeria’s oil production rose to 1.54 million barrels per day in January 2025, which will strengthen external reserves. Despite challenges, the banking sector remains strong, but the CBN will continue monitoring the ongoing recapitalization process.
The MPC expects further improvements in price stability, supported by: A more stable foreign exchange market, lower fuel prices, Government efforts to improve security in food-producing areas
The Committee also praised the CBN’s efforts to improve transparency in the forex market, which have boosted investor confidence. Moving forward, the CBN remains committed to policies that will attract foreign investments, increase financial inclusion, and support overall economic growth.
