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The Central Bank of Nigeria (CBN) slashes the interest rate on one year treasury bills paper allotted to investors by seven basis points, detail from its midweek primary market auction result has revealed.

At the main auction on Wednesday, the CBN offered bills worth N500.0 billion across standard maturities: 91-day, 182-day, and 364-day maturities to investors for subscriptions.

The monetary authority opened 91-day bills worth N50 billion, 182-day bills worth N100 billion, and 364-day bills totaling N350 billion for investors’ subscription in competitive bids.

Investors’ appetite remained strong as total subscriptions settled at N1.17 trillion, exceeding N500 billion worth of Nigerian Treasury bills that was offered by the CBN.

The CBN allotted N615.8 billion worth of Treasury bills across standard maturities to investors at the main auction. Preference was given to investors that bid for one year bills, accounting for about 82% of the total allotment.

CBN offered N50 billion worth of Nigerian Treasury bills with 91 days to maturity; investors staked N72.56 billion, while N71.67 billion was allotted. Also, CBN opened N100 billion worth of Nigerian Treasury Bills with 182 days tenor for sales. Total subscriptions came to N46.84 billion, while N41.13 billion was allotted to investors.

For one year bills, the CBN offered N350 billion. The 1-year bills recorded N1.052 trillion in total subscription, while the CBN only sold N503 billion to investors.

Stop rates for 91-day and 182-day bills were unchanged at 18% and 18.50%, respectively. However, the CBN slashed the spot rate for 364-day bills by 7 basis points to 19.56% from 19.63%. #CBN Cuts Interest Rate on 1-Year Nigerian Treasury Bills

$17bn: Nigeria Positions as World Bank’s Largest Portfolio in Africa

by Nairametrics

The Central Bank of Nigeria (CBN) has voted to retain the Monetary Policy Rate (MPR) at 27.5%, following its 300th Monetary Policy Committee (MPC) meeting held in Abuja.

This was disclosed by the apex bank’s Governor Olayemi Cardoso during the post-MPC press briefing on Tuesday.

Key Monetary Policy Decisions: 

• Monetary Policy Rate (MPR): Retained at 27.5%, reflecting the committee’s conservative policy stance.
• Asymmetric Corridor: Maintained at +500/-100 basis points around the MPR.
• Cash Reserve Ratio (CRR): Held at 50% for Deposit Money Banks and 16% for Merchant Banks.
• Liquidity Ratio: Left unchanged at 30%.

All 12 MPC members voted unanimously to maintain current policy rates, the CBN stated.

The decision demonstrates the committee’s cautious approach to monetary management, as it continues to assess prevailing macroeconomic conditions and the effectiveness of recent tightening measures.

The CBN highlighted the recent moderation in Nigeria’s inflation rate, which eased to 23.71% in April 2025 from 24.23% in March, according to the latest data from the National Bureau of Statistics (NBS).

Experts’ projections 

Nairametrics had earlier predicted the CBN’s decision to retain the MPR at 27.5%.

Mr. Olaitan S. Sunday, Managing Director of Rostrum Investment & Securities Ltd, earlier told Nairametrics that the decision aligns with expectations.

“Holding the MPR at 27.5% will continue to support the naira, anchor inflation expectations, and bolster investor confidence in the Nigerian economy,” he said.

David Adonri, Vice Chairman of the Board at Highcap Securities, emphasized that underlying structural issues may influence future policy.

“The outcome of the next MPC meeting may not reflect moderating inflation because foreseen threats to the economy require a proactive response. Demand-side pressure remains too high compared to supply,” he noted.

Afrinvest’s Head of Research, Damilare Asimiyu, similarly expects a hold, citing key cost-side improvements.

“We forecast a moderate decline in May inflation, aided by relative exchange rate stability and the recent reduction in pump prices by Dangote Refinery from N835 to N825 per litre. This should modestly reduce business operating costs and improve household purchasing power,” the analyst said.

What This Means for the Economy 

The CBN’s decision to hold rates steady signals its focus on maintaining price stability while cautiously supporting economic recovery.

• By maintaining current rates, the bank is giving room for existing policies to yield results before implementing further adjustments.
• According to the MPC communiqué, the committee emphasized the importance of coordinated efforts between fiscal and monetary authorities to sustain economic growth and manage inflationary pressures.
• Market analysts suggest any potential rate cuts will depend on inflation trends and exchange rate stability over the coming months.

If inflation continues to moderate and the foreign exchange market stabilizes, the CBN may consider a more accommodative policy stance in the second half of the year.

Market snapshot 

Ahead of the MPC meeting, Nairametrics reported that the naira appreciated slightly to N1,597/$1 at the official foreign exchange market on Monday, up from Friday’s closing rate of N1,599.01/$1 — a signal of investor optimism about the CBN’s ongoing stabilization efforts.

The next MPC meeting is scheduled for 21-22 July 2025. 

The Central Bank of Nigeria Monetary Policy Committee has retained the country’s interest rate at 27.50 percent in January, the same rate as in November last year amid inflation drops.

It also retained the Cash Reserve Ratio, CRR at 50 basis points and the liquidity ratio, LR, at 30 percent and the asymmetric corridor at +500/-100 basis points around the MPR; other monetary policy decisions were retained.

CBN Governor, Olayemi Cardoso disclosed this in a press briefing on Thursday after 299th MPC in Abuja.

The apex bank boss explained that the rate pause was necessary following the recent inflation decline, which dropped to 24.48 percent in January after the Consumer Price Index rebase.

“The members of the MPC unanimously agreed to retain the interest rate at 27.50 percent” he stated.

DAILY POST reports that this is the first pause in interest rate hikes since Cardoso took office in September 2023.

This comes as economists and financial experts have, in the last months, called for an interest rate pause.

The Centre for the Promotion of Private Enterprise has been championing a call for a pause in the nation’s interest rate hike.

Recall that on Tuesday, National Bureau of Statistics announced that Nigeria’s headline and food inflation rate dropped to 24.48 percent and 26.08 percent in January from 34.80 percent and 39.93 percent in December last year.

TheCentral Bank of Nigeria(CBN) has reviewed upwards the fees charged on Automated Teller Machine (ATM) withdrawals effective March 1.

In a circular, CBN Acting Director, Financial Policy & Regulation Department,  John Onojah, explained that the revised charges will address increasing operational costs and enhance the efficiency of banking services.

Under the new rules, customers withdrawing from their own bank’s ATMs (on-us transactions) will continue to enjoy free withdrawals.

However, withdrawals from on-site ATMs (ATMs located at bank branches) will incur an N100 fee per N20,000 withdrawn.

For withdrawals at ATMs belonging to other banks (Not-on-Us transactions), an N100 fee plus a surcharge of not more than N500 per N20,000 withdrawal will apply.

The CBN emphasized that the surcharge is the income of the “ATM deployer/acquirer and must be disclosed to consumers at the point of withdrawal.”

James Emejo from Thisday in Abuja

The Central Bank of Nigeria (CBN) has approved the release of the Nigerian Foreign Exchange (FX) Code as a guideline to the banking industry to promote ethical conduct of Authorised Dealers in the Nigerian FX market.

In a notice posted on its website yesterday, the apex bank further announced that the code would be formally launch on January 28, 2025, in Abuja.

In October 2024, the central bank announced the introduction of the Electronic Foreign Exchange Matching System (EFEMS), for Foreign Exchange (FX) transactions in the Nigerian Foreign Exchange Market (NFEM).

The new system was to be implemented not later than December 01, 2024, and preceded by a two-week test run in November.

The system seeks to enhance governance, and transparency and facilitate a market-driven exchange rate that will be accessible to the public.

The CBN further explained that the platform would further reduce speculative activities, eliminate market distortions and give the CBN improved oversight capabilities to effectively regulate the market.

The bank noted that authorised dealers would subsequently conduct all FX transactions in the interbank FX market on the EFEMS approved by the apex bank where transactions will be reflected immediately.

Authorised dealers were, therefore, required to comply with extant guidelines and regulations governing the FX market and ensure that all necessary documentation, training, and systems integrations were concluded ahead of the go-live date.

The central bank added that it would publish real-time prices and buy/sell orders data from the system, and in collaboration with the Financial Markets Dealers Association (FMDA), publish the rules for the EFEMS.

The Nigerian FX Code and revised Market Operating Guidelines for the Nigeria Foreign Exchange Market will also provide guidance to market participants.

The Naira recently appreciated against the dollar, closing at ₦1,567/$1 on December 5, 2024. This marks the third consecutive day of exchange rate appreciation since the Central Bank of Nigeria (CBN) launched the Enhanced Foreign Exchange Market System (EFEMS).

Whilst it is natural to be curious or even concerned when exchange rates fluctuate, it’s important to understand that exchange rate movements are often short-term and should not necessarily prompt hasty decisions.

However, reacting solely to short-term fluctuations can undermine your original investment strategy and lead to missed long-term gains.

Now, let’s break down what is happening and, most importantly, what it means for your investment strategy.

What’s driving the Rally?

The recent rally of the Naira against the U.S. Dollar can be attributed to several key factors which combined to improve the currency’s position in the market. One of the major drivers is Nigeria’s recent successful Eurobond issuance, the country raised $2.2 billion in U.S. Dollar-denominated bonds.

This influx of foreign capital from foreign portfolio investors has significantly increased the supply of U.S. Dollars in the market. These bonds are offered and settled in dollars which has contributed to enhance liquidity and strengthen the Naira’s position against the dollar, providing a more stable foundation for the currency.

Additionally, the Central Bank of Nigeria (CBN) has been strategically selling U.S. Dollars into the market. This move is part of the CBN’s broader effort to manage Nigeria’s dollar reserves while ensuring enough dollars are available to support the country’s economic activities.

By supplying more dollars in the market, the CBN aims to balance supply and demand for foreign currency, which has been critical in stabilising the exchange rate. Moreover, the CBN’s focus on spending Naira within Nigeria rather than exporting it to foreign markets has further helped stabilise the currency.

Another significant development is introducing the Enhanced Foreign Exchange Market System (EFEMS), which replaced the previous Investors & Exporters (I&E) window. The EFEMS platform enhances transparency and improves the price discovery process in the foreign exchange market. With more U.S. Dollars entering the system, this platform has made it easier for market participants to access foreign currency, which has been instrumental in narrowing the supply-demand gap and supporting the Naira’s appreciation.

Finally, the seasonal influx of dollars in December has also contributed to strengthening the Naira. This time of year traditionally sees an increase in the supply of dollars as Nigerians abroad send remittances home for the holiday season, and businesses import goods in preparation for the festive period. This regular inflow of dollars helps boost liquidity in the market, further contributing to the strengthening Naira.

Imagine you are in a car, driving down a long, winding road with no clear destination. The road ahead is riddled with bumps, sharp turns, and potholes, making every mile a test of endurance. For Nigerians, this journey mirrors their unending battle with inflation—the ever rising costs of things that make life an uphill struggle.

The Central Bank of Nigeria (CBN) has been behind the wheel, attempting to steer us safely through this uncertain terrain. This week, they pressed the accelerator again,raisingthe benchmark interest rate to 27.5% to regain control over rising inflation.

Why did CBN increase the rate again?

CBN Governor Yemi Cardoso announced that the Monetary Policy Committee (MPC) unanimously agreed tohikeinterest rates. The decision comes as inflation continues its relentless climb—not just year-on-year, but month-on-month as well. In October, inflation soared to 33.9%, a level not seen since 1996.

This price surge is mainly due to rising costs of food and fuel, coupled with a depreciating naira, which together are straining household budgets and squeezing business operations for many Nigerians.

At the same time, the naira has struggled this year, losing46%of its value against the dollar. This depreciation comes from efforts to let the currency float freely and address the ongoing dollar shortage. As a result, the cost of imports has soared, adding to Nigeria’s inflation problems.

But they have been increasing rates. Why is inflation still going up?

Despite the CBN’s repeated interest rate hikes, inflation in Nigeria continues to rise, and the naira remains under pressure. This raises a pressing question:why isn’t it working?

Raising interest rates is a classic tool for controlling inflation, but it’s only one piece of a larger puzzle. By making borrowing costlier, the CBN aims to reduce spending and cool demand. However, Nigeria’s inflation is deeply rooted in structural problems that extend far beyond consumer behavior—problems that interest rate hikes alone can’t fix.

The core problem issupply-side inflation, which is driving up the cost of living, particularly in essential areas like food and fuel. Much of Nigeria’s inflation is tied to rising food prices, which continue to climb sharply. Food inflation is particularly severe in urban areas, where supply chains are under more strain due to higher transportation costs and challenges in food preservation. As food gets more expensive in cities, the burden on consumers grows heavier.

To truly tackle inflation, the CBN’s monetary policy must work hand-in-hand with solutions targeting these underlying challenges. Key issues like the high cost of production—caused by a weakened naira, soaring fuel prices, and poor infrastructure—are making it more expensive for businesses to produce and transport goods. These structural problems cannot be solved by interest rate hikes alone, underscoring the need for broader, more comprehensive reforms.

What does this mean for you?

For most Nigerians, this means that the cost of living will remain high for the foreseeable future. With interest rates increasing, borrowing costs will increase, making loans and credit more expensive. While higher interest rates can lead to better returns on savings, inflation is still outpacing the benefits. This means the naira in your pocket is losing its purchasing power daily, especially for food and fuel.

According to the Central Bank of Nigeria’s (CBN) international paymentdata, remittances in the first nine months of 2024, amounted to $1.54 billion, a 16.7% decline from $1.85 billion recorded in the same period in 2023. Remittances refer to amounts sent by individuals working abroad to support their families and loved ones in their home country.

The decline in remittances may be attributed to several factors, including a weak global economy, and a weak domestic currency. Over the last decade, remittance inflows played an important role in the Nigerian economy. Remittances help households with members in a foreign country to meet basic expenses such as education and healthcare. It is also an important source of foreign currencies and contributes to the country’s foreign exchange reserves.

Beyond substistence purposes, remittances are also channels into productive investments, in turn, bolstering economic growth. While the government might have limited influence on the global economy, government policies aimed at improving the domestic business environments could help reverse the declining trend of remittances.

According to the National Bureau of Statistics (NBS) Consumer Price Index (CPI) and InflationReport for October, headline inflation increased to 33.88%, from 32.70% in September, and 27.33% a year ago. The headline inflation surged due to rising food prices for commodities such as guinea corn, rice, and maize grains.Food inflation increased to 39.16% from 37.77% in September and 31.52% in October 2023.At the state level, Bauchi recorded the highest inflation rate at 46.68%, while Katsina had the lowest at 29.59%. Sokoto had the highest food inflation at 52.18%, while Rivers had the lowest at 33.87%.

The continuous rise in inflation could further worsen already weakened purchasing power. Unchecked high inflation might result in social unrest, as more Nigerians are unable to afford essential items they could buy a year ago. Hence, the government must tackle inflation head-on.

Food inflation can be reduced by addressing security concerns, increasing agricultural productivity and reducing post-harvest losses arising from poor storage infrastructure and weak transport networks.

According to the Central Bank of Nigeria’s October 2024 Business Confidence Survey, average capacity utilization fell by 4.3 percentage points to 51% down from 55.3% in the previous month.  Each sector of the economy exhibited varying levels capacity utilization. Mining and quarrying, electricity, gas, and water supplies had the highest levels of utilization in October at 57%, followed by manufacturing at 52%. Compared to the average installed capacity of 51%, the agriculture sector reported the lowest level of utilization at 48%, suggesting there is room to increase the sector output.

The low level of utilization is partly due to high interest rates, insecurity, complex tax structures, and inflation. These factors have all contributed to a less advantageous business environment, resulting in lower capacity utilization. Declined capacity utilisation signals a negative consequence on the economy which could result in output levels below potential and low export volumes. Low capacity utilization posits a challenge to the aspiration of the government to achieve a $1 trillion economy by 2030. Hence, the government needs to address the insecurity issue, prioritize infrastructure development and maintenance, lower the interest rate, and improve the efficiency of energy sources and alternatives.