CBN Holds Benchmark Rate at 26.5% as Inflation Ticks Up to 15.69% — Economists Split

The Central Bank of Nigeria's Monetary Policy Committee (MPC) concluded its 305th meeting on May 20, voting to hold the Monetary Policy Rate (MPR) at 26.5%. All other parameters were maintained: Cash Reserve Ratio for commercial banks at 45%, merchant bank CRR at 16%, and the asymmetric corridor at +50/-450 basis points. The naira was trading at ₦1,373.34 to the US dollar in the official I&E window (parallel market: approximately ₦1,400). Governor Olayemi Cardoso cited the continued disinflation trend as justification, noting inflation had fallen from 31.7% at its 2024 peak to current levels. However, new April 2026 NBS data released simultaneously showed headline inflation ticked up from 15.38% (March) to 15.69% (April), with food inflation at 16.06% — breaking two consecutive months of decline. The Centre for Promotion of Private Enterprise (CPPE) called the decision 'pragmatic,' while other economists described it as 'zero relief for working Nigerians' still paying elevated prices for food, fuel, and transport following the 2023 subsidy removal. The MPC has now held the rate steady for four consecutive meetings.