• …MPC retains interest rate at 27.5%
• …foreign reserves exceed $40bn
• Tinubu sets Q1’26 target for take-off of Single Window project

Despite the December 2026 deadline given for Nigerian banks to meet the new recapitalisation thresholds, the Governor, Central Bank of Nigeria (CBN), Mr. Olayemi Cardoso has, however, disclosed that eight banks have fully met the set figures.

He disclosed this yesterday while briefing members of the press at the end of the Monetary Policy Committee (MPC) meeting in Abuja. Giving updates on the recapitalisation exercise, he said pretty much progress has been recorded.

According to him, “eight banks have already surpassed the minimum required capital, and one has raised significant funds on the London Stock Exchange, signaling international investor confidence.”

This was as all 12 MPC members unanimously retained key parameters unchanged.

The benchmark lending rate (MPR ) was retained at 27.50 per cent, cash reserve ratio at 50 per cent for deposit money banks and 16 per cent for merchant banks.

Also retained was the liquidity ratio at 30 per cent, and the asymmetric corridor was held at +500/-100 basis points around the MPR. Cardoso said the MPC’s decision to retain key parameters unchanged was to “sustain the momentum of disinflation.

He said: “Let us also remind ourselves a little bit about where we’re coming from. I think it’s very important to put the proper context for us to understand where we’re coming.

From that we will give a good view, a better view of where we’re going. “We’re coming from a situation of enormous money supply.

And I’ve spoken about this in different forums. I’ve spoken about the huge injections that went into our economy from ways and means- unprecedented and probably difficult to find any other place to compare it to.

“I’ve also spoken about the huge intervention injections that went into our economy. Those things are of such a proportion that they just simply do not disappear overnight.

So those are some of the challenges that we have to cope with. That is why our response to this is that we are, of course, operating in a very tight monetary situation.

“We have absolutely no choice but to do that. It’s at a cost, but it needs to be done. If we’re going to achieve the single digit inflation, which I spoke about earlier, these are part of the measures.

In addition to that, I want to say that there are upsides and positives that will complement the work of the central bank. “For example, we are aware that for a while there have been issues with respect to revenue coming in from the oil and gas side.

Now there are very positive shoots coming out from that. We’ve seen it for the first time, since January of this year it has been published that we are meeting our OPEC quota.

That’s very good news. Of course, there’s also greater transparency with respect to NNPL and its earnings. “So I think some of these areas will basically help to bring down the inflation that we are talking about.

We are also ensuring that the handshake that is supposed to take place between the fiscal and monetary side, the close coordination that needs to take place between the two is going to continue.”