The Central Bank of Nigeria (CBN) has retained the Monetary Policy Rate (MPR), the country's benchmark interest rate, at 26.5 per cent, maintaining its tight monetary policy stance amid persistent global economic uncertainties.

The decision was reached at the end of the 306th Monetary Policy Committee (MPC) meeting, held in Abuja from July 20 to 21, 2026, and announced on Tuesday by the CBN Governor, Olayemi Cardoso.

Cardoso said the committee unanimously agreed to leave the benchmark lending rate unchanged after carefully assessing both domestic and global economic developments.

According to him, Nigeria's economy continues to demonstrate resilience following recent structural reforms. However, escalating geopolitical tensions, particularly the renewed hostilities in the Middle East, pose significant risks to global energy prices and could fuel inflationary pressures at home.

In addition to retaining the MPR at 26.5 %, the MPC also left other key monetary policy parameters unchanged. The committee retained the Standing Facilities Corridor at +50/-450 basis points around the MPR, while maintaining the Cash Reserve Ratio (CRR) at 45% for Deposit Money Banks, 16 %for merchant banks, and 75% for non-TSA public sector deposits.

Explaining the rationale behind the decision, Cardoso said the committee weighed the balance of risks facing the economy before opting to sustain its current policy stance.

"The committee's decision to maintain the current policy stand follows a thorough assessment of the balance of risk. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due mainly to the renewed hostilities in the Middle East," he said.

The MPC noted that while inflationary pressures have shown signs of easing, maintaining the existing monetary policy framework remains necessary to preserve macroeconomic stability and consolidate gains achieved in the fight against inflation.

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