Nigeria's interest rate today

Policy rate (MPR)

26.50%

held at the 305th MPC

Real policy rate

+10.57pp

MPR − 15.93% inflation

Cash Reserve Ratio

45%

commercial banks (16% merchant)

Asymmetric corridor

+50/-450

basis points around the MPR

Central Bank of Nigeria, 305th MPC meeting (19–20 May 2026). Read the full decision in the May 2026 rate report.

The rate path: a pause, not a pivot

Chaired by Governor Olayemi Cardoso, the Monetary Policy Committee has moved cautiously in 2026 — one cut, then a hold — while it waits for inflation to resume falling before easing further.

• 26.50% 305th meeting, 19–20 May 2026 — held. The MPC kept the MPR at 26.50%, its first pause of the year, citing two back-to-back monthly increases in inflation it judged largely transitory.
• 27.00% → 26.50% 304th meeting, 23–24 February 2026 — cut 50bps. The first cut of the easing cycle, from 27.00% to 26.50%, on the back of disinflation and a steadier naira.

Next decision: the 306th MPC meeting, scheduled 20–21 July 2026.

Why the real rate matters

With the policy rate at 26.50% and headline inflation at 15.93% (May 2026), Nigeria's real policy rate is about +10.57 percentage points — the policy rate sits above inflation, so the CBN's stance is restrictive in real terms. A positive real rate is what gives the bank room to cut later without re-igniting prices. See the full inflation picture on the Nigeria inflation hub →

The naira and credit backdrop

A 26.5% policy rate keeps money expensive: commercial lending rates sit well above the MPR, so the builders, manufacturers and food distributors who finance stock on credit pay a premium that feeds into the prices households ultimately pay. FX stability is a condition for the CBN to resume cutting.