The Central Bank of Nigeria has raised the Monetary Policy Rate by 25 basis points to 27.50 per cent, from 27.25 per cent, in response to rising inflationary pressures.
This decision was made during the final Monetary Policy Committee meeting of 2024, led by CBN Governor Olayemi Cardoso. Other key monetary parameters remain unchanged, including the Cash Reserve Ratio (50 per cent for Deposit Money Banks) and the liquidity ratio (30 per cent).
Cardoso highlighted that inflation, especially food prices and rising energy costs, remains a major challenge.
He expressed optimism that improved security and full deregulation of the petroleum sector would help stabilize prices.
The CBN is also focused on strengthening collaboration with fiscal authorities to ensure economic stability and growth.
The governor also addressed Nigeria’s status on the Financial Action Task Force grey list, projecting the country’s exit by Q2 2025. Additionally, efforts to increase diaspora remittances and enhance currency stability were discussed.
Looking ahead to the holiday season, the CBN is preparing measures to ensure sufficient cash supply.
The MPC reaffirmed its focus on managing inflation, stabilizing the exchange rate, and supporting economic recovery into 2025.
