The Monetary Policy Committee of the Central Bank of Nigeria has decided to maintain the country's benchmark interest rate at 26.5%. This decision was announced on Wednesday, May 20, 2026, following the committee's 305th meeting held in Abuja.
Key Decisions from the MPC Meeting
CBN Governor Olayemi Cardoso confirmed that the Monetary Policy Rate would remain unchanged. Additionally, the committee kept other key financial indicators steady. The Cash Reserve Ratio was retained at 45 percent for commercial banks and 16 percent for merchant banks. Non-Treasury Single Account public sector deposits will continue to attract a 75 percent CRR. The MPC also left the standing lending and deposit facility corridor unchanged at +50 and -450 basis points around the MPR.
Inflation Context
The committee's choice to hold rates steady follows a slight increase in Nigeria's inflation figures. According to the latest Consumer Price Index report from the National Bureau of Statistics, headline inflation rose from 15.38 percent in March 2026 to 15.69 percent in April 2026, an increase of 0.31 percentage points.
This decision comes after the apex bank reduced the interest rate by 50 basis points in February 2026 and maintained the same rate during the November 2025 MPC meeting. The retention of the rate at 26.5% reflects the committee's cautious approach amid ongoing economic pressures.
