By Tochukwu Bliss, Abuja, with Agency report
The Governor, Central Bank of Nigeria (CBN), Yemi Cardoso, says there has been relative improvements in some of Nigeria’s key macroeconomic indicators.
Cardoso said this while presenting the communiqué from the 300th meeting of the Monetary Policy Committee (MPC) of the CBN on Tuesday in Abuja.
The Committee was unanimous in its decision to hold policy and thus decided to retain the Monetary Policy Rate (MPR) at 27.50% and retain the asymmetric corridor around the MPR at +500/-100 basis points.
It also retained the Cash Reserve Ratio (CRR) of Deposit Money Banks at 50.00% and Merchant Banks’ at 16% and the Liquidity Ratio at 30.00%.
Mr. Cardoso, who announced the decision after the MPC’s 300th meeting, said the hold would enable members to better understand near-term developments in the economy.
during a news conference briefing on Tuesday in Abuja, following the conclusion of. This second pause in rates comes after six consecutive hikes recorded in 2024.
The CBN Governor explained that the MPC based its decision on recent improvements in macroeconomic indicators.
“The MPC noted the relative improvements in some key macroeconomic indicators which are expected to support the overall moderation in prices in the near to medium term,” he said.
In particular, he cited that the National Bureau of Statistics (NBS), headline inflation dropped to 23.71% in April 2025 from 24.23% in March.
On a month-on-month basis, inflation also retreated from 3.9% to 1.86%. Food inflation dropped to 21.26% from 21.79%, while core inflation eased to 23.39% in April from 24.43% in March.
He said that the improvements were expected to support the overall moderation in prices in the near to medium term.
Given the relative stability observed in the foreign exchange market, members urged the CBN to sustain the implementation of the ongoing reforms to further boost market confidence.
According to him, these include the progressive narrowing of the gap between the Nigeria Foreign Exchange Market (NFEM) and Bureau De Change (BDC) windows, the positive balance of payments position, and easing petrol price.
He said that the MPC members also noted with satisfaction the progressive moderation in food inflation.
He said that they commended the Federal Government for implementing measures to increase food supply as well as stepping up the fight against insecurity, especially in farming communities.
“The MPC, thus, encouraged security agencies to sustain the momentum while government provides necessary inputs to farmers to further boost food production.
“The committee, however, acknowledged underlying inflationary pressures driven largely by high electricity prices, persistent foreign exchange demand pressure and other legacy structural factors.
“The MPC noted new policies introduced by the Federal Government to boost local production, reduce foreign currency demand pressure, and thus, lessen the pass-through to domestic prices.
“Given the relative stability observed in the foreign exchange market, members urged the CBN to sustain the implementation of the ongoing reforms to further boost market confidence,” he said.
He reiterated the call by members of the MPC on the fiscal authority to strengthen current efforts at enhancing foreign exchange earnings, especially from gas, oil and non-oil exports.
“The MPC, however, expressed concerns about the recent decline in crude oil prices, attributable to increased production by non-OPEC members as well as uncertainties associated with U.S. trade policy.
“This presents new challenges for fiscal receipts and budget implementation,” he said.
CPPE commends MPC decision
Meanwhile, the Centre for the Promotion of Private Enterprise (CPPE) yesterday lauded the MPC’s decision to hold rates, even as the Organised Private Pector (OPS) had expected a slash to boost activities in the productive sectors.
CPPE’s Chief Executive Officer (CEO), Dr Muda Yusuf, commended the MPC’s decision, sdescribing it is as a pragmatic and well-considered move, given the current economic conditions.
CPPE had expressed concerns that the recent tightening of monetary policy tools had created difficult financing conditions for investors in the real economy.
In particular, he said businesses were yet to recover from the shocks of the previous rate hikes, further supporting the need for a pause.
He noted further that current global economic uncertainties also influenced the MPC’s decision to hold the rates.
