Central Bank of Nigeria Holds Interest Rate at 26.5 Percent

The Central Bank of Nigeria retained its benchmark Monetary Policy Rate at 26.5 percent following the 306th Monetary Policy Committee meeting in Abuja on July 21, 2026. This decision marks the second time the interest rate has remained unchanged this year and represents the second consecutive policy pause after a 50-basis-point cut earlier in 2026.

Governor Olayemi Cardoso announced that the committee unanimously decided to maintain the rate after assessing domestic and global economic conditions. While the National Bureau of Statistics reported that headline inflation dipped slightly to 15.91 percent in June, Cardoso warned that renewed hostilities in the Middle East pose fresh risks to energy prices and domestic inflation. The bank aims to prioritize price stability and policy credibility over aggressive easing to anchor inflation and support the value of the naira.

To preserve tight liquidity, the bank also kept the Cash Reserve Ratio at 45 percent for deposit money banks and 16 percent for merchant banks. The Standing Facilities Corridor remains at +50/-450 basis points and the Liquidity Ratio is held at 30 percent. These measures ensure borrowing costs remain high to attract foreign investors.