The Central Bank of Nigeria has raised the monetary policy rate (MPR) by 400 basis points to a record 22.75%.
This was announced by the governor of the CBN, Yemi Cardoso, who chaired the Monetary Policy Committee (MPC) meeting for the first time since he assumed office in September 2023. This is the highest MPC rate increase ever.
In 2023, Nigeria’s MPC took a different approach, steadily increasing the MPR across four consecutive meetings, ultimately reaching a substantial 18.75 percent by the end of the year.
In spite of these proactive measures, other significant indicators such as the Cash Reserves Ratio (CRR) and Liquidity Ratio remained static, with the CRR staying at 32.5 percent and the Liquidity Ratio at 30.0 percent throughout the period.