CBN holds MPR at 26.5% as economy shows resilience

Nigeria’s economy is gaining ground, and the Central Bank is not letting go of the brakes just yet.
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‎By Chioma Obinagwam
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‎The Monetary Policy Committee (MPC), at its 305th meeting, retained the Monetary Policy Rate (MPR) at 26.5 per cent, alongside all other monetary parameters. The decision reflects a cautious, forward-looking stance aimed at sustaining macroeconomic stability and anchoring inflation expectations.
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‎CBN Governor Olayemi Cardoso said Nigeria’s economy remains resilient, pointing to Q4 2025 GDP growth of 4.0%, driven by stronger industrial and agricultural output, as well as improved performance in ICT, transport, and storage sectors.
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‎Economy records broad gains
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‎The Committee noted significant improvements across key economic indicators: exchange rate stability has improved, external reserves have risen to $49.49 billion with over nine months of import cover, monetary policy transmission has strengthened, and the banking sector has grown more resilient alongside ongoing fiscal consolidation efforts.
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‎The MPC also welcomed Nigeria’s sovereign rating upgrade, describing it as evidence of improving macroeconomic fundamentals and growing investor confidence in the country’s reform agenda.
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‎33 stronger banks emerge from recapitalisation
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‎On the financial sector, the CBN confirmed that its banking recapitalisation exercise has concluded successfully, resulting in 33 stronger banks with improved financial soundness. The development positions the sector to better support economic growth and long-term stability.
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‎FX market deepens under CBN reforms
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‎Governor Cardoso highlighted a major shift in Nigeria’s foreign exchange market, noting that daily turnover has risen from approximately $100 million to an average of $500 million, with figures occasionally peaking at $1 billion.
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‎”Nigeria’s FX market has deepened significantly under ongoing reforms, with daily turnover rising from about $100m previously to an average of $500m, and at times peaking as high as $1 billion,” Cardoso said.
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‎He reaffirmed the CBN’s commitment to FX market transparency, consumer protection, and support for SME growth.
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‎Looking ahead, Confiance News gathered, the MPC projected continued economic resilience in 2026, supported by policy reforms, FX stability, and improving food supply conditions expected to drive disinflation.