Central Bank of Nigeria (CBN), has increased its Monetary Policy Rate (MPR) from 27.25 per cent to 27.50 per cent.
The apex bank said the move is aiming at addressing rising economic challenges facing the country.
The MPR is the benchmark rate on which banks derive their interest rates.
The CBN took the decision on Tuesday at Monetary Policy Committee (MPC) meeting of the end of the year, held at the bank’s headquarters in Abuja.
Yemi Cardoso, CBN Governor who chaired the meeting said the committee unanimously approved the 25 basis-point hike.
The adjustment, the CBN said, aims to stabilise inflationary pressures and sustain financial system resilience.
The MPC still kept the Cash Reserve Ratio (CRR) at 50 per cent for Deposit Money Banks and 16 per cent for Merchant Banks.
The Liquidity Ratio (LR) remains at 30 per cent, alongside an Asymmetric Corridor of +500/-100 basis points around the MPR.
Cardoso explained that the measures were necessary to align monetary policy with prevailing economic realities, ensuring the financial system remains robust while fostering sustainable economic growth.