The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained the country’s benchmark interest rate, known as the Monetary Policy Rate (MPR), at 26.5%.

The decision was reached during the committee’s 305th meeting held in Abuja, with all 11 MPC members participating in deliberations on inflation, lending conditions, and the broader state of the Nigerian economy.

CBN Governor Olayemi Cardoso announced the outcome on Wednesday at the end of the meeting.

According to the apex bank, all other key monetary policy parameters were also left unchanged, signaling the bank’s decision to maintain its current monetary tightening stance aimed at controlling inflation and ensuring financial stability.

The move comes months after the CBN reduced the rate by 50 basis points in February 2026, before maintaining it again at a previous MPC session.

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The MPC’s decision reflects ongoing concerns about inflationary pressure, exchange rate stability, and liquidity management within the economy.

By holding the rate steady, the CBN appears focused on balancing inflation control with the need to avoid excessive pressure on borrowing and economic activity.

CBN Introduces New Overnight Financing Benchmark

Meanwhile, the Central Bank also announced the introduction of the Nigerian Overnight Financing Rate (NOFR), a new benchmark for Nigeria’s money market.

The development was disclosed in a statement signed by the CBN’s Acting Director of Corporate Communications, Hakama Sidi-Ali.

According to the apex bank, the initiative was developed in partnership with the Financial Markets Dealers Association (FMDA) to improve transparency and strengthen monetary policy transmission across the financial system.

“The Central Bank of Nigeria, in collaboration with the Financial Markets Dealers Association, today announced the introduction of the Nigerian Overnight Financing Rate, a standardised benchmark aimed at enhancing transparency, strengthening monetary policy transmission, and deepening Nigeria’s money market,” the statement read.

Financial analysts say the new benchmark could help improve efficiency in short-term lending markets and provide clearer signals for interest rate movements within the banking sector.