Nigeria Interest Rate

Nigeria's central bank unanimously maintained its benchmark lending rate at 27.50% on February 20, 2025, following a 25bps hike in November. The decision comes after six consecutive rate hikes last year, totaling 875 basis points. Governor Olayemi Cardoso noted the MPC’s satisfaction with recent macroeconomic trends, particularly the naira's stability since December, but emphasized the need for continued price monitoring following changes in the CPI methodology. Nigeria’s headline inflation dropped to 24.48% in January, sharply lower than last month’s 34.80% after a rebasing exercise to reflect changes in consumption patterns. Since early 2024, the CBN has pursued an aggressive tightening cycle to rein in inflation and stabilize the naira.