The Central Bank of Nigeria’s Monetary Policy Committee (MPC) has reduced the benchmark interest rate by 50 basis points, from 27.5% in July to 27% at its 302nd meeting held on September 22–23, 2025.
The decision, according to CBN Governor Olayemi Cardoso, was driven by sustained disinflation over the past five months, projections of lower inflation for the rest of 2025, and the need to support economic growth.
Other key highlights include:
Cash Reserve Requirement (CRR) for commercial banks reduced to 45%, with merchant banks retained at 16%.
A new 75% CRR imposed on non-TSA public sector deposits for liquidity management.
Liquidity ratio maintained at 30%.
Adjustment of standing facilities corridor to strengthen interbank market efficiency.
The MPC expressed satisfaction with Nigeria’s macroeconomic stability, citing sustained disinflation, improved GDP growth, a stable exchange rate, and stronger external reserves.
Nigeria’s economy grew by 4.23% year-on-year in Q2 2025, up from 3.48% in the same quarter of 2024. The industry sector led growth with a 7.45% expansion, while agriculture and services grew by 2.82% and 3.94% respectively.
Aggregate GDP in nominal terms stood at N100.73 trillion in Q2 2025, compared to N84.48 trillion a year earlier, representing a 19.23% nominal growth.
