Nigeria’s economy recorded significant gains across key macroeconomic indicators as the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) retained the Monetary Policy Rate (MPR) at 26.5 per cent, citing the need to sustain stability and consolidate ongoing reforms.
The decision was reached at the MPC’s 305th meeting, where members also retained all other monetary policy parameters, reflecting what the apex bank described as a cautious and forward-looking strategy aimed at anchoring inflation expectations and preserving macroeconomic stability.
CBN Governor, Olayemi Cardoso, said the Nigerian economy remained resilient despite global and domestic challenges, noting that Gross Domestic Product (GDP) growth reached 4.0 per cent in the fourth quarter of 2025.
According to him, the growth was driven by stronger industrial and agricultural output, alongside improved performance in the Information and Communications Technology (ICT), transport and storage sectors.
The MPC highlighted several positive developments in the economy, including improved exchange rate stability, stronger external reserves, enhanced monetary policy transmission and sustained fiscal consolidation efforts.
Nigeria’s external reserves rose to $49.49 billion during the review period, providing more than nine months of import cover and strengthening the country’s external position.
The Committee also pointed to growing resilience within the banking sector, noting that ongoing reforms had improved the capacity of financial institutions to support economic growth and financial stability.
In a further sign of improving investor confidence, the MPC welcomed Nigeria’s recent sovereign credit rating upgrade, describing it as evidence of strengthening macroeconomic fundamentals and increasing confidence in the government’s reform agenda.
In the financial sector, the Committee noted that the successful banking recapitalisation programme had resulted in the emergence of 33 stronger banks with improved financial soundness and greater capacity to finance critical sectors of the economy.
Cardoso reaffirmed the CBN’s commitment to deepening reforms in the foreign exchange market, promoting transparency, strengthening consumer protection and supporting the growth of small and medium-sized enterprises (SMEs).
He disclosed that the foreign exchange market had become deeper and more transparent, with daily turnover increasing significantly from about $100 million in previous years to an average of $500 million, occasionally reaching $1 billion.
Looking ahead, the MPC projected continued resilience in Nigeria’s economy in 2026, supported by ongoing policy reforms, exchange rate stability and improving food supply conditions expected to contribute to a gradual decline in inflationary pressures.
The Committee expressed optimism that sustained reforms and macroeconomic discipline would further strengthen economic growth, improve investor confidence and enhance overall economic stability in the coming year.
