The Central Bank of Nigeria has kept its Monetary Policy Rate at 27 percent, marking the fourth consecutive pause this year. The decision reflects a priority on stability amid a slowing inflation cycle, with the bank choosing caution to allow earlier tightening measures to take effect. The Monetary Policy Committee’s November 2025 decision came as headline inflation fell to 16.05 percent in October, indicating disinflation. Despite this downward trend, the committee held the rate steady to observe the lagged effects of previous hikes.
To manage short‑term liquidity and curb inflation expectations, the bank adjusted the asymmetric corridor around the MPR to +50/‑450 basis points. CBN Governor Olayemi Cardoso emphasized that monetary stability is a prerequisite for sustainable growth, stating, “after stability comes investment, and after investment comes growth.” The move underscores a cautious approach to balancing easing with inflation control while maintaining a predictable policy environment.
Nigeria’s gross external reserves rose to $46.7 billion in mid‑November 2025, a 9.2 percent increase from September. This buffer provides import cover for 10.3 months and reflects a more transparent, market‑driven foreign‑exchange system. The narrowing gap between official and parallel‑market exchange rates has also boosted confidence in the CBN’s managed‑float regime.
Nevertheless, inflation risks remain. Global commodity prices, geopolitical tensions, and domestic food‑supply shocks could derail the disinflation trend. The CBN believes that keeping rates unchanged will help anchor expectations and allow earlier tightening measures to filter through.
Reactions to the decision have been mixed. Some economic experts and members of the Organised Private Sector have praised the move and urged the CBN to consider future rate reductions. Others argue that borrowing conditions remain harsh for micro, small, and medium‑sized enterprises, despite improvements in macroeconomic indicators. The bank’s cautious stance reflects uncertainties in the global economy, its focus on sustaining investor confidence in Nigeria’s markets, and a shift toward a more conventional policy approach. As the economy continues to navigate a slowing inflation cycle, the CBN’s decision will be closely watched for its impact on growth and stability.
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