The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) concluded its 303rd meeting on November 24‑25, 2025 by leaving the benchmark interest rate unchanged at 27 percent and widening the standing‑facilities corridor to +50/‑450 basis points around the MPR.
The committee also retained the cash‑reserve ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks, while keeping the 75 percent CRR on non‑TSA public‑sector deposits.
In a statement released after the meeting, the Manufacturers Association of Nigeria (MAN) welcomed the decision to pause further rate hikes but warned that the high cost of credit remains a major obstacle for the sector.
“The decision to adjust the standing facilities corridor to enhance liquidity is noted. However, the expectation of the Association is a further reduction in the rate to reduce the cost of borrowing for manufacturers,” MAN said.
The MPC’s report highlighted a “significant” slowdown in inflation to 16.05 percent in October – the lowest level in seven months driven by sustained monetary tightening, stronger capital inflows, a current‑account surplus and moderating fuel prices. It also noted a stable exchange rate and external reserves above $46 billion, providing more than ten months of import cover.
Despite these macro‑economic gains, manufacturers continue to face borrowing costs ranging from 30 percent to 37 percent, which MAN says “hinder production and reduce the competitiveness of the sector.”
The association called on the CBN to pursue a downward review of the MPR in subsequent meetings and to introduce additional incentives that would channel more credit to the real economy, especially to small‑ and medium‑scale manufacturers.
MAN also urged the federal government to complement monetary policy with fiscal discipline and stepped‑up investment in power, roads and logistics, and to address the “lingering spate of insecurity” that raises production costs and disrupts supply chains.
The CBN’s move to broaden the liquidity corridor aims to encourage commercial banks to lend more, but the central bank said it will continue to monitor the impact of its decisions on credit access for the real sector.
The next MPC meeting is scheduled for early 2026, and stakeholders will be watching closely to see whether the apex bank will begin easing rates to support manufacturing growth.
