On November 26, 2024, the Central Bank of Nigeria (CBN) announced a 25 basis point increase in the country’s interest rate, bringing it to 27.5%, up from 27.25% in September. This decision came after the 298th meeting of the Monetary Policy Committee (MPC) held in Abuja.

CBN Governor, Olayemi Cardoso, shared the committee’s unanimous decision during a press briefing, stating that the increase is a strategic response to the country’s high inflation rate, which reached 33.87% in October 2024.

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To complement this, Cardoso confirmed that the Cash Reserve Ratio (CRR) would remain at 50% for deposit money banks, and 16% for merchant banks, up from the previous rates of 45% and 14%, respectively.

While announcing other key monetary policy measures, Cardoso highlighted that the liquidity ratio would stay at 30%, with the asymmetric corridor remaining at +500/-100 basis points around the Monetary Policy Rate (MPR).

These adjustments are part of the CBN’s ongoing efforts to manage the economic challenges posed by inflation, particularly as core inflation remains high due to factors like energy costs and supply constraints.