By Dayo Lekan
According to the communique no 160 issued by the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) its 303rd
meeting held in Abuja on Monday November 24 and Tuesday November 25, 2025. All Committee members attended the meeting.
As usual the Committee took monetary policy decisions that are to shape the economy for the intervening period between now and the next meeting. By the way this meeting is the last for the year as the next meeting is scheduled for February 23rd and 24th 2026.
The decisions reached at the meeting are as follows:The Committee decided by a majority vote, to maintain the current monetary policy stance with an adjustment to the corridor as follows:
1. Retain the Monetary Policy Rate (MPR) at 27.0 per cent.
2. Adjust the Standing Facility corridor around the MPR at +50/-450 basis points.
3. Retain the Cash Reserve Requirement (CRR) for Deposit Money Banks at 45.00 per
cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector
deposits.
4. Keep the Liquidity Ratio unchanged at 30.00 per cent.
This is a reflection of the stand of a majority of members so it means there was some dissent even though the ratio of dissent to agreement is not provided. Maybe in future the majority and minority percentages or ratios should be provided. It can provide some useful insights.
Substantially, the committee has continued to hold fast to the finest professional and industry values of conservatism, circumspection and care.
Compared to the last time the only ratio that changed is the standing facility corridor around the MPR.
Instructively, this latest action of the apex banks has been regarded as contrary to widely held expectations by many economists and financial players who had hoped for a cut in the MPR.. Rather, the move is a decisive step by the monetary authority to cautiously shift even as inflation indicators showed mild improvement.
On the other hand, some analysts think that the move is to discourage commercial banks from retaining excess liquidity in its Standing Deposit Facility (SDF) by reducing the potential returns the banks earn on such idle funds, thereby incentivising lending to the real economy. This explained the imperative for the committee’s choice to hold the rate reflects its assessment that current monetary conditions are beginning to yield positive results.
It is clear that the Committee is quite keen on maintaining stability rather than spike prices especially as we are already in yuletide, a season where demand pull inflation is usually manifest.
One of the key factors it took into consideration is the headline inflation rate which has slowed down right now compared to this time last year and this has consistently been on the decelaration gear in the last 7 months.
Although the decision to maintain the MPR comes at a time when businesses are facing high borrowing costs, with a deeper understanding and appreciation of the times we are in now, the CBN’s monetary discipline is necessary to restore macroeconomic stability.
As the apex bank targets and commits to managing system liquidity effectively In a situation of uncertainty amid global and domestic headwinds, for the CBN, sustaining a tight stance is the best bet to help contain speculative pressures in the FX market and support the naira’s resilience against
other strong foreign currencies such as the dollar and pound sterling.
Good enough, the Nigerian stock has reacted positively to the rate retaining as the equities market bounced back from six consecutive days of losses, gaining N95 billion in market capitalization. This points to the fact that the policy stance of the CBN signalled stability to market participants, spurring interest in medium and large capitalised stocks. Moreso, the market benchmark interest rate untouched helped renew buying interest, particularly among cautious investors seeking policy clarity and entry.
All things being equal, a stronger macroeconomic environment remains a target for the CBN to really do a rate cut as expected by many experts.
In conclusion, the apex bank’s commitment to taking the nation out of the economic woods is not lost on Nigerians and the effort is much appreciated even though there are still pains and difficulties. Indeed, Nigerians would opt for stability any day rather than be plunged into avoidable confusion and retrogression through recklessness and mismanagement.