The Central Bank of Nigeria (CBN) has kept the Monetary Policy Rate (MPR) unchanged at 27%, a move aimed at sustaining the progress made in reducing inflation and stabilising the financial system—conditions critical to the survival of small and medium-sized enterprises (SMEs).
CBN Governor Olayemi Cardoso said the Monetary Policy Committee (MPC) agreed that maintaining current rates would allow previous tightening measures to fully transmit into the economy, helping to ease cost pressures affecting businesses. The standing facility corridor was adjusted to +50/-450 basis points, while other key parameters—including banks' Cash Reserve Requirements and liquidity ratio—remain unchanged.
Cardoso noted that inflation has slowed for the seventh straight month, boosted by stable exchange rates, better food supply and stronger capital inflows. However, with inflation still above ideal levels, he said it was too early to cut rates.
He highlighted that Nigeria's external reserves now cover about 10 months of imports, supported by rising non-oil exports, improved oil output, increased remittances and renewed investor confidence. The recent upgrade of Nigeria's credit rating and removal from the FATF grey list have further strengthened global confidence.
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For SMEs, the CBN says the stability being restored in the FX and credit markets will gradually ease financing pressures, improve import planning, and support better pricing for inputs.
Cardoso also defended the CBN's shift away from interventionist lending, saying previous programmes created financial risks and discouraged banks from innovative SME lending. The new market-driven approach, he said, will ultimately unlock more sustainable financing for small businesses.
Economic experts, however, caution that inflation remains higher than Nigeria's target range. They say the CBN's decision to hold rates is necessary to prevent premature loosening that could worsen inflation and harm production costs for SMEs.
The MPC reaffirmed its commitment to data-guided decisions aimed at sustaining price stability—an essential condition for SME growth and long-term economic recovery.
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