adsAs expected, the Central Bank of Nigeria (CBN)-led Monetary Policy Committee (MPC) maintained the Monetary Policy Rate (MPR) at 26.50 per cent per annum at its May 2026 meeting. The decision reflects a more cautious policy stance following the 50 basis points rate cut in February, which was quickly followed by the outbreak of the U.S.–Iran conflict and a sharp global energy price shock. Nigeria’s headline inflation also edged higher to 15.69 per cent, reinforcing the CBN’s preference for caution. The MPC’s decisions reflects strong drive to put inflation on check, improve stability and raise confidence of global investors in the domestic economy.
Since the U.S.–Iran conflict began, Brent crude has averaged approximately $100pb for 11 consecutive weeks, while global inflation expectations have risen to 4.4 per cent from 3.8 per cent.
Inflationary pressures are expected to remain potent due to higher energy costs, election spending, and lingering supply-side constraints.
However, a stable exchange rate and monetary tightening are expected to keep price pressures tapered.
Hence, at MPC’s 305th policy meeting, all rates and parameters were kept unchanged.adsads
