Nigeria Economic Update, Issue 47

The Central Bank of Nigeria (CBN's) 303rd Monetary Policy Committee (MPC) meeting, convened on November 24-25, 2025, opted to hold the Monetary Policy Rate (MPR) steady at 27.0% while adjusting the Standing Facility corridor to +50/ 450 basis points. The Cash Reserve Requirement (CRR) was maintained across the board: Deposit Money Banks at 45.0%, Merchant Banks at 16.0%, and the non-TSA public sector at 75.0%. The Liquidity Ratio was retained at 30.0%. The Committee considered the sustained deceleration in headline inflation (year-on-year) over seven consecutive months, reaching 16.05% in October 2025. This decline was attributed to factors such as sustained monetary policy tightening, stable exchange rates, increased capital inflows, surplus current account balance, better food supply, and stability in the price of Premium Motor Spirit (PMS). To sustain these positive trends, the CBN should intensify efforts to enhance the efficiency of foreign exchange market interventions by leveraging digital tracking and forecasting tools (using Machine Learning and Artificial Intelligence infrastructure) to anticipate volatility and respond promptly. It is also necessary to boost agricultural output through the release of large quantities of fertiliser to the Ministry of Agriculture and collaboration with state governments to improve security in farming regions and sustain agricultural activities. Furthermore, there is a need to expand social intervention programmes to shield vulnerable populations from the effects of inflation