The Central Bank of Nigeria (CBN) has raised the Monetary Policy Rate (MPR) from 27.25% to 27.50%. This announcement was made by the CBN Governor, Mr. Olayemi Cardoso, following the conclusion of the Monetary Policy Committee (MPC) meeting held in Abuja earlier today.
Cardoso disclosed during the post-MPC briefing, which is ongoing, that the decision to increase the rate was supported by 11 of the 12 MPC members present at the meeting. The hike marks another step in the CBN’s effort to manage inflation and stabilize the economy.
Recalling the September decision, the CBN had raised the MPR by 50 basis points from 26.75% to 27.25% during the 154th MPC meeting. At that time, the asymmetric corridor of +500/-100 basis points was retained.
“The decision to raise the interest rate again reflects the committee’s commitment to curbing inflationary pressures while fostering macroeconomic stability,” Cardoso explained.
While the hike aims to tackle economic challenges, small business owners have expressed concern over its potential impact. Many have described the decision as “unfortunate,” warning that higher borrowing costs could contract businesses and lead to job losses.
“Every time the rates go up, it squeezes businesses further,” said a local entrepreneur. “Many firms will be forced to downsize because they can’t afford loans at these rates.”
