Five members of the Central Bank of Nigeria’s Monetary Policy Committee voted for a 50-basis-point reduction in the Monetary Policy Rate at the November 2025 meeting, citing sustained disinflation, stronger external buffers, and improving growth conditions.

This was according to their personal statements released by the apex bank on its website on Wednesday. The members are a former Executive Director at Fidelity Bank Plc, Aku Odinkemelu, an economist and policy expert, Aloysius Ordu, the Managing Director at EcoDonini Solutions Ltd, Bandele Amoo, a former Director-General of the Securities and Exchange Commission, Lamido Yuguda, a renowned economist and university don, Prof Murtala Sagagi.

The dissenting members, who make up 41.7 per cent of the 12-member committee, proposed cutting the MPR from 27.0 per cent to 26.5 per cent and adjusting the asymmetric corridor to plus 50 and minus 450 basis points, while retaining all other prudential parameters.

The committee, however, voted by majority to retain the benchmark rate at 27.0 per cent, reflecting continued caution over inflation risks.

Odinkemelu said Nigeria’s disinflation process had become entrenched and broad-based, which led to her decision for a rate cut. “I vote to reduce the Monetary Policy Rate by 50 basis points from 27.00 per cent to 26.50 per cent,” she said.

She pointed to seven consecutive months of headline inflation slowdown, improved food supply conditions, and continued external reserve accumulation, arguing that a modest rate cut would support recovery in the productive sectors without undermining price stability.

Ordu anchored his vote on both global and domestic developments. He noted that several advanced and emerging market central banks had begun cautious easing cycles amid moderating inflation and cited Nigeria’s improved external position, stronger capital inflows, exchange rate stability, and easing inflation as justification for a calibrated adjustment.

Amoo said easing was necessary to address weak credit transmission to the real economy. While acknowledging persistent inflation risks, he argued that a small rate cut, backed by strict cash reserve requirements, could encourage banks to lend more effectively to productive sectors such as agriculture and manufacturing, especially ahead of seasonal demand pressures.

Also backing a cut was Yuguda, who described the case for easing as compelling, citing progress in inflation moderation, robust non-oil sector growth, and improving foreign reserves. He said the proposed cut was modest and forward-looking, aimed at consolidating growth momentum while maintaining monetary discipline.

Sagagi framed his position around growth and liquidity dynamics, saying, “I therefore vote for a 50 basis point reduction in the MPR to spur growth.”

He said the lagged effects of earlier monetary tightening were already delivering results and that a calibrated reduction in the policy rate would support inclusive growth, while the asymmetric corridor would prevent excess liquidity from destabilising the exchange rate or reigniting inflation.

Despite their position on the policy rate, the five members were aligned on retaining other key policy tools.

They supported keeping the Cash Reserve Ratio at 45 per cent for deposit money banks, 16 per cent for merchant banks, and 75 per cent on non-Treasury Single Account public sector deposits, while maintaining the Liquidity Ratio at 30 per cent.

They also endorsed narrowing the standing facilities corridor to plus 50 and minus 450 basis points to discourage banks from parking idle funds at the CBN and to promote interbank activity and real sector lending.

The majority of MPC members, however, voted to retain the MPR at 27 per cent, stressing the need to consolidate the gains from previous tightening as inflation remains in double digits and fiscal-driven liquidity risks persist.

The committee noted that although headline inflation eased to 16.05 per cent in October 2025, risks remained from seasonal spending, election-related fiscal pressures, and potential exchange rate shocks.

The voting pattern highlights a growing internal debate within the MPC as macroeconomic conditions improve. While the majority remains cautious, the sizeable minority in favour of easing suggests that future meetings could tilt towards gradual rate cuts if disinflation persists and external stability holds.

The next MPC meeting is scheduled for February 23 and 24, 2026, with analysts projecting a rate cut following the further slowdown in inflation to 15.15 per cent in December 2025.

The PUNCH earlier reported that the Monetary Policy Committee of the Central Bank of Nigeria retained the benchmark interest rate at 27 per cent, extending its pause on monetary tightening as the bank seeks to consolidate recent progress in stabilising prices, exchange rates, and capital flows.

CBN Governor, Olayemi Cardoso, announced the decision in Abuja at the end of the committee’s 303rd meeting, where all twelve members were present. Cardoso said the MPC voted by a majority “to maintain the monetary policy stance,” adding that members were convinced that the economy required more time for earlier decisions to filter through.

“The committee decided by a majority vote to maintain the monetary policy stance,” he said, signalling that the bank was sticking to its disinflation strategy despite calls from parts of the private sector for more easing to reduce borrowing costs.