- …MPC retains interest rates at 26.5%
- …Foreign reserves surge to $49.49bn
The Central Bank of Nigeria (CBN) has disclosed that deposit money banks and Developing Financial Institutions (DFIs) increased their lending facilities to Nigeria’s Small and Medium-sized Enterprises (SMEs) by 30.07 per cent to N199 billion in April 2026.
The amount grew from N153 billion in March 2026. CBN Governor, Mr Olayemi Cardoso, gave the update on banks’ lending to SMEs yesterday while addressing journalists at the May edition of the Monetary Policy Committee (MPC).
At yesterday’s meeting, 11 members of the Committee unanimously retained the benchmark interest rate, Monetary Policy Rate (MPR), at 26.5 per cent, the standing facilities corridor around the MPR at +50/-450 basis points; retained the Cash Reserve Requirement (CRR) for banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and non-TSA public sector deposits at 75.00 per cent. Cardoso said MPC’s decisions were anchored on a comprehensive assessment of risks to the outlook.
Although MPC noted inflation had risen marginally for two consecutive months, largely induced by external shocks, the committee, he said, recognized its transitory nature and remained confident that the current macroeconomic environment was sufficiently robust to support a return to disinflation.
“In reaching its decisions, the MPC particularly noted the spillovers from the Middle East crisis, which has exerted upward pressure on energy prices, cost of transportation and other logistics.
“However, available evidence indicates that the impact of the crisis on the Nigerian economy has been largely muted due to the benefits of prior policy reforms. “These include exchange rate stability, improvements in external reserve buffers, strengthened monetary policy transmission, well capitalised banking system, and ongoing fiscal consolidation, which have significantly bolstered the economy’s ability to absorb external shocks.
“As a result, the passthrough of global commodity and energy price shocks to domestic inflation has been significantly mitigated and would have been more pronounced in the absence of these reforms.
The MPC was, therefore, convinced that the essential conditions for price stability remain firmly in place”, Cardoso said. He said the economy was strong and resilient, noting that Nigeria’s external reserves stood at $49.49 billion as of May 15, 2026 from a $48.35 billion position on the March figure.
