The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) at the 306th meeting unanimously voted to retain the Monetary Policy Rate at 265 per cent just as other parameters were retained.
The Standing Facilities Corridor was also retained around the MPR at +50/-450 basis points while it also retained the Cash Reserve Requirement (CRR) for Deposit Money Banks at 4500 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent.
The Committee’s decision to maintain the current policy stance followed a thorough assessment of the balance of risks, according to the CBN Governor, Olayemi Cardoso
Although the headline inflation moderated marginally in June 2026, the committee observed that global uncertainties have heightened due mainly to the renewed hostilities in the Middle East In view of the evolving developments, maintaining a cautious monetary policy stance remains appropriate, the committee said. The decision of the MPC at the time came amidst the moderation in inflation.
Ahead of the 307th meeting coming on September, the factors have substantially not changed even as the headline inflation further moderated to 1543 per cent in the month of July, down from 15.91 per cent in June.
But as stakeholders await the next meeting, members of the MPC who unanimously endorsed the last decisions retaining all monetary policy parameters have justified their decisions, hinged on the need to consolidate the gains already achieved in restoring macroeconomic stability which the CBN under Cardoso has pursued vigorously
The results of the stability have been widely commended by stakeholders across all strata of the market amidst rising investor confidence and predictability of business decisions
Nigeria’s Foreign Reserves Top $54bn, Extend Import Cover Nigeria’s external reserves surged to $5408bn, their highest level since 2008, strengthening the country’s foreign exchange buffer and providing further support for the naira and those in the export business.
Data from the Central Bank of Nigeria showed that reserves reached $54084bn on September 3, up $1.42bn from $52.66bn on August 19.
Report says the current level is the highest since December 2008, when Nigeria’s reserves stood at about $5421bn.
The acceleration has been particularly notable since late August Reserves climbed from $53.11bn on 24 August to $53.30bn on 26 August, $53.51bn on 28 August and $53.81bn by 31 August.
They then rose to $5390bn on 1 September and $53.99bn on 2 September before crossing the $54bn mark the following day.
Report says positive sentiment around easy capital repatriation from Nigeria continues to attract hot money into the economy, with foreign portfolio investors targeting high-yield financial assets in the local capital market
A member of the MPC, Aku Pauline Odinkemelu in his submission said, “The evidence before us supports a steady hand Domestic output remains resilient at 3.89 per cent, inflation is moderating, external buffers are strong at over US$52 billion, and the banking system remains sound.
“The IMF has retained Nigeria’s growth forecast at 41 per cent for 2026 and 4.3 per cent for 2027, affirming the positive trajectory of the economy, while also cautioning that rising prices for essentials could worsen poverty and food insecurity, a risk that reinforces the need for a balanced policy approach.
“Having carefully weighed the prevailing risks and conditions, maintaining the current policy stance remains the most prudent course of action The uptick in inflation is externally driven and already moderating, tightening would be premature, while easing risks unravelling the disinflation gains we have secured. A hold decision is therefore justified, it is evidence-based, consistent with our mandate, and aligned with sound monetary policy practice. This approach will continue to anchor liquidity, reinforce price an d financial stability, and preserve the flexibility to respond as shocks evolve.”
Other members of the MPC chaired by Cardoso are Aloysius Uche Ordu; Bandele AG. Amoo; Emem Usoro; Lamido Abubakar Yuguda; Muhammad Sani Abdullahi; Murtala Sabo Sagagi; Mustapha Akinkunmi; Philip Ikeazor and Raymond O. Omachi. They all voted unanimously to retain the rates.
According to the personal statements published by the CBN recently, Ordu while justifying his decision to vote in retention of all the parameters said, “First, headline inflation has eased only marginally, and food inflation remains a genuine concern Second, renewed global uncertainty could quickly reverse recent gains through energy prices, exchange-rate expectations, and imported input costs. Third, the domestic economy has remained resilient, which suggests to me that the current stance can be maintained while we gather additional information.
“I want to be candid about the risks on both sides A premature easing of policy could undermine the credibility of the disinflation process and reignite exchange-rate and price pressures. At the same time, further tightening at this stage could be disproportionate, given the recent moderation in headline inflation, improved reserves, and the need to avoid placing undue pressure on productive economic activity. Should disinflation become more broad-based and expectations remain well anchored, I would expect scope for recalibration to emerge over time. If risks intensify, however, we must be ready to respond decisively.
“Maintaining the MPR at 2650 percent, while retaining the existing corridor, CRR, and liquidity ratio, therefore provides what I consider the most appropriate signal currently. It preserves restriction, supports positive real returns, sustains confidence in the naira, and gives the Committee the time it needs to assess whether the recent moderation in inflation will prove durable.”
Lamido Abubakar Yuguda said, “The decision to hold all policy parameters steady reflects a balanced assessment of the risks Inflation is moderating only gradually, food prices remain under pressure, global monetary conditions are restrictive, capital flows to emerging markets are vulnerable, fiscal space is limited, and geopolitical risks are rising. Under these circumstances, maintaining a steady and credible policy stance is the most prudent course. It supports the price stability mandate, preserves investor confidence, anchors exchange rate expectations, and safeguards the external position. We must be steadfast and remain alert to the evolving risks.”
Muhammad Sani Abdullahi on his part stressed that a hold decision “best balances the need to sustain disinflation, preserve external stability, support financial-system soundness and avoid unnecessary constraints on growth”
According to Phillip Ikeazor, inflation “appears to have reached a turning point” He said, “The impact of monetary policy is now clearly visible across the economy and, for the first time in many months, has effectively moderated inflation pressures even in rural areas.”
Emem Usoro who is the Deputy Governor for Operations at the CBN, explained that her vote “was shaped by one central policy judgement: the economy now requires disciplined patience rather than additional tightening”
“I, therefore, favoured maintaining a restrictive stance to sustain disinflation, while preserving sufficient policy space to support output recovery amid evolving global and domestic conditions,” she said
Muhammad Sani Abdullahi observed that the Nigeria’s financial system outlook remains favourable, underpinned by the recent recapitalisation exercise and prudential indicators that remain broadly within regulatory thresholds
“Against this backdrop, a hold decision best balances the need to sustain disinflation, preserve external stability, support financial-system soundness and avoid unnecessary constraints on growth,” he added
Murtala Sabo Sagagi said he was convinced that retaining all monetary policy parameters unchanged remains “the most prudent course of action at this meeting”
He added, “I also held a strong opinion that the relative stability achieved should be augmented with deliberate policy action to stimulate domestic productivity using a combination of fiscal and monetary tools In my assessment, annual growth rates of less than 5% is insufficient to guarantee stability and restore welfare losses due to reforms.”
Mustapha Akinkunmi on his part said his position to retain all parameters “is consistent with the policy stance I have maintained since joining the Committee in 2024”
He said, “Throughout this period, I have consistently argued that inflationary pressures in Nigeria are predominantly structural, driven largely by food price dynamics, energy costs and exchange-rate passthrough effects While acknowledging the progress achieved in stabilising the foreign exchange market and moderating headline inflation, I have maintained that policy easing should be undertaken only when disinflation becomes sufficiently broad-based and durable.”
Raymond O Omachi stressed that it is necessary “to be mindful of headwinds from elevated global uncertainty, weaker trade prospects, and geopolitical tensions as they continue to dictate global capital flows and commodity price stability, even as a possible rebound in crude oil prices offers tailwind support to fiscal and external buffers.”
According to him, the moderation in headline inflation, alongside relatively stable exchange rates, improved external reserves, and resilient non-oil sector growth, reflects the cumulative impact of the tightening cycle
“However, inflationary pressures have not been fully curtailed, as food inflation continues to trend upwards, thus requiring continued vigilance to guard against a complete shift of focus from the price stability objective,” he added
PremiumTrust Bank receives Dual Credit Rating Upgrades
PremiumTrust Bank has received dual credit rating upgrades from two of Nigeria’s leading rating agencies, Agusto & Co and DataPro Limited, underscoring the Bank’s financial strength, sound risk management and consistent growth trajectory.
While Agusto & Co upgraded the Bank’s long-term rating from BBB+ to A- and its short-term rating from A2 to A1, DataPro has upgraded the Bank’s long-term rating from A- to A, while affirming its short-term rating at A1.
In a statement, the bank said a long-term rating in the ‘A’ category reflects a low credit risk profile and a strong capacity to meet financial obligations as they fall due, while an A1 short-term rating denotes the highest capacity for timely settlement of short-term financial commitments
“Taken together, the two outcomes represent upgrades from both agencies within the same review cycle and mark a further improvement in the Bank’s credit standing since its last assessment,” the financial institution said
The agencies cited the Bank’s robust capitalisation, with its capital adequacy ratio rising from 208% to 40.8%, alongside a strong liquidity ratio of 71.1% and a net interest margin of 83.3%.
Asset quality remained sound, with a non-performing loan (NPL) ratio of 02% and a cost of funds of 3.2%, while cost efficiency was reflected in a cost-to-income ratio of 23.2%.
Agusto & Co further noted the Bank’s pre-tax return on equity of 84.6% as the highest in the Nigerian banking industry. The upgrades come against the backdrop of the Bank’s strong underlying performance, having reported a pre-tax profit of N177.1 billion and total assets of N1.7 trillion in FY2025.
Beyond the numbers, the statement quoted both agencies to have pointed to the depth of the Bank’s management team, its widening branch network and digital footprint, and the discipline of its governance and compliance framework as factors supporting the improved ratings
Four years into operation, the Bank has grown its network to 33 branches nationwide, with recent additions in Irrua, Edo State; Owerri, Imo State and Yenagoa, Bayelsa state alongside continued investment in digital banking, including an upgraded PremiumTrust Mobile app featuring adaptive banking, AI-powered assistants and personalised lifestyle tools
Commenting on the ratings, Emmanuel Efe Emefienim, Managing Director/Chief Executive Officer of PremiumTrust Bank, said:
“These upgrades are a strong validation of the fundamentals we have built at PremiumTrust Bank From inception, we have been deliberate about establishing our presence and building an institution with the financial strength, resilience, and operating discipline to compete in the Nigerian banking industry.
“Our focus now is on converting this momentum into sustained growth We are strengthening our balance sheet, expanding our physical and digital footprint, and investing in the capacity needed to serve our customers and support the businesses and communities across our markets,” he said.