CBN retains interest rate at 26.5% amid global economic uncertainty

Business

ABUJA, Nigeria (NPA) — The Central Bank of Nigeria has retained the country’s Monetary Policy Rate (MPR) at 26.5 per cent following the conclusion of the 305th meeting of the Monetary Policy Committee (MPC).

Briefing journalists after the meeting, CBN Governor, Olayemi Cardoso, announced that the committee voted to maintain all key monetary policy parameters amid prevailing global economic uncertainties.

According to Cardoso, the MPC retained the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks, 16 per cent for merchant banks, and 75 per cent for non-Treasury Single Account (non-TSA) public sector deposits.

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The committee also retained the asymmetric corridor around the MPR at +50 and -450 basis points.

The next meeting of the MPC is scheduled to be held on July 20 and 21, 2026.

Speaking on efforts to improve access to financing for Small and Medium Enterprises (SMEs), Cardoso said supporting the sector requires collaboration among multiple institutions, including commercial banks, the Bank of Industry, the Ministry of Finance and other stakeholders.

He said the apex bank sees itself as a catalyst, using available policy tools to encourage financial institutions that previously avoided SME lending to increase support for the sector.

According to him, the volume of credit extended to SMEs has continued to rise as banks begin to diversify their lending portfolios.

“In April 2026, the amount of new credit increased to about N199 billion from N153 billion recorded in March, particularly at the retail end of the market. Banks are now more willing to diversify their lending positions,” Cardoso said.

The CBN Governor also spoke on efforts to protect banking customers from fraud, disclosing that the apex bank recently signed a Memorandum of Understanding with the Nigerian Communications Commission (NCC).

He explained that the collaboration is aimed at strengthening monitoring systems, reducing operational bottlenecks and improving fraud prevention mechanisms within the financial ecosystem.

“Between the NCC and the CBN, we can jointly monitor the system and create a more enabling environment that encourages investment,” he stated.

On the newly launched foreign exchange manual, Cardoso said the initiative is part of broader reforms already introduced through the FX code to improve transparency and stability in the foreign exchange market.

He noted that the manual, scheduled to take effect from June 1, 2026, is expected to improve consistency, transparency and investor confidence in the market.

“It is important that all stakeholders have a copy. It will bring consistency and transparency. It will also make it easier for exporters to repatriate their foreign exchange earnings into the system because they will have easy and unfettered access to their funds,” he added.