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Monetary Policy

Monetary Policy Decisions

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 23rd and 24th March 2015

The Committee decided as follows:

  1. Retain the MPR at 13 per cent.
  2. Retain the CRR on Private Sector deposits at 20 per cent;
  3. Retain CRR on Public Sector deposits at 75 per cent; and
  4. Retain the liquidity ratio at 30 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 19th and 20th January 2015

The Committee decided as follows:

  1. Retain the MPR at 13.0 percent.
  2. Retain the CRR on private sector deposits at 20.0 percent.
  3. Retain the CRR on private sector deposits at its current level of 75.0 percent.
  4. Retain the liquidity ratio at 30.0 percent; and maintain a symmetric corridor of ±200 basis points around the MPR.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 24th and 25th November 2014

The Committee decided as follows:

  1. Increase the MPR by 100 basis points from 12.00 to 13.00 per cent.
  2. Maintain a symmetric corridor of +/- 200 basis points around the MPR.
  3. Increase the CRR on private sector deposits by 500 basis points from 15.00 to 20.00 per cent with immediate effect.
  4. Move the midpoint of the official window of the foreign exchange market from ₦155/US$ to ₦168/US$.
  5. Widen the band around the mid-point by 200 basis points from +/-3 per cent to +/-5 per cent.
  6. Retain public sector CRR at its current level of 75.00 per cent.
  7. Retain the net open foreign exchange trading position at 1.00 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 18th and 19th September 2014

The Committee decided as follows:

  1. Retain the MPR at 12 per cent with a corridor of +/- 200 basis points around the midpoint.
  2. Retain the public sector Cash Reserve Requirement at 75.0 per cent.
  3. Retain the private sector Cash Reserve Requirement at 15.0 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 21st and 22nd July, 2014

The Committee decided as follows:

  1. Retain the MPR at 12 per cent with a corridor of +/- 200 basis points around the midpoint.
  2. Retain the Liquidity Ratio at 30 per cent.
  3. Retain the public sector Cash Reserve Requirement at 75.0 per cent
  4. Retain the private sector Cash Reserve Requirement at 15.0 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 19th and 20th May 2014

The Committee decided as follows:

  1. Retain the MPR at 12%.
  2. Retain the MPR corridor at +/-200 basis points.
  3. Keep the CRR on public sector deposits at 75% and CRR on private sector deposits at 15%.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 24th and 25th March 2014

The Committee decided as follows:

  1. Retain the MPR at 12 per cent with a corridor of +/- 200 basis points
  2. Raised the private sector CRR by 300 basis points to 15 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 20th and 21st January 2014

The Committee decided as follows:

  1. MPR remains at 12 per cent +/- 200 basis points and liquidity ratio (LR) at 30 per cent.
  2. Public sector CRR increased from 50 per cent to 75 per cent.
  3. Private sector CRR retained at 12 per cent
  4. The CBN to take immediate step to redress the supply-demand imbalance in the BDC segment while maintaining its focus on anti-money laundering (AML) activities.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 18th and 19th November 2013

The Committee decided as follows:

  1. Retain MPR at 12 per cent;
  2. Retain private sector CRR at 12%; and public sector CRR at 50%
  3. Retain Liquidity Ratio at 30%

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 23rd and 24th September 2013

The Committee decided as follows:

  1. Retain MPR at 12.0 per cent
  2. Retain the symmetric corridor of 200 basis points around the MPR
  3. Retain the 50.0 per cent Cash Reserve Requirement (CRR) on public sector funds, and 12.0 per cent CRR on private sector deposits.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 22nd and 23rd July, 2013

The Committee decided as follows:

  1. Retain MPR at 12 per cent
  2. Maintain the symmetric corridor around the MPR at +/-2 per cent
  3. Retain the CRR at 12 per cent; and
  4. Introduce a 50 per cent CRR on public sector deposits
  5. Other deposits CRR was retained at 12 per cent

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 20th and 21st May 2013

The Committee decided as follows:

  1. Retain the MPR at 12 per cent with a corridor of +/-200 basis points
  2. Retain the Cash Reserve Requirement at 12 per cent
  3. Liquidity Ratio at 30 per cent;
  4. Net Open Position at 1.0 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 18th and 19th March 2013

The Committee decided as follows:

  1. Retain the MPR at 12 per cent with a corridor of +/- 200 basis points
  2. Retain the CRR at 12 per cent
  3. Liquidity Ratio at 30 per cent and
  4. Retain the Net Open Position at 1 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 21st January 2013

The Committee decided as follows:

  1. Retain the MPR at 12.0 per cent with a corridor of +/- 200 basis points;
  2. Retain the CRR at 12.0 per cent; and
  3. Liquidity Ratio at 30 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 19th and 20th November, 2012

The Committee decided as follows:

  1. Retain the MPR at 12 per cent with a corridor of +/- 200 basis points around the midpoint;
  2. Retain the CRR at 12.0 per cent; and
  3. Liquidity Ratio at 30 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 17th and 18th September, 2012

The Committee decided as follows:

  1. Retain the Monetary Policy Rate (MPR) at 12 per cent with +/-200 basis points corridor;
  2. Retain the Cash Reserve Requirement (CRR) at 12.0 per cent.
  3. Retain the Net Open Position at 1.0 per cent

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 23rd and 24th July, 2012

The Committee decided as follows:

  1. Retain the Monetary Policy Rate (MPR) at 12.00 per cent with symmetric corridor of +/-200 basis points
  2. Increase the Cash Reserve Requirement (CRR) from 8.0 per cent to 12.0 per cent with effect from July 25th.
  3. Reduce the Net foreign exchange Open Position (NOP) to 1.0 per cent from 3.0 per cent with immediate effect.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 21st and 22nd May, 2012

The Committee decided as follows:

  1. Retain MPR at 12.0 per cent with interest rate corridor of +/- 200 basis points;
  2. Retain CRR at 8.0 per cent; and
  3. Retain minimum liquidity Ratio of 30.0 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 19th and 20th March, 2012

The Committee decided as follows:

  1. Retain MPR at 12.0 per cent with interest rate corridor of +/- 200 basis points;
  2. Retain CRR at 8.0 per cent;
  3. Retain minimum liquidity Ratio of 30.0 per cent; and
  4. To watch closely, developments with respect to the fiscal stance and to respond appropriately if, and when, the need arises.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee 30th and 31st January, 2012

The Committee decided as follows:

  1. Retain MPR at 12.0 per cent with interest rate corridor of +/- 200 basis points;
  2. Retain CRR at 8.0 per cent;
  3. Retain minimum liquidity Ratio of 30.0 per cent; and
  4. Retain the Mid-point of exchange rate at N155/US$1 with a band of +/-3.0 per cent.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee Meeting, Monday and Tuesday March 19 and 20, 2012

The Monetary Policy Committee (MPC) met on March 19 and 20, 2012 with 10 members in attendance to review domestic and international economic and financial conditions with a view to addressing monetary policy challenges in the short-to medium-term.

After considering and deliberating on all the reports, the Committee decided as follows:

  1. Retain MPR at 12.0 per cent with interest rate corridor of +/- 200 basis points;
  2. Retain CRR at 8.0 per cent; and
  3. Retain minimum liquidity Ratio of 30.0 per cent.
  4. The Committee also resolved to watch closely developments with respect to the fiscal stance and to respond appropriately if, and when, the need arises.

 

Key Decisions of the Central Bank of Nigeria Monetary Policy Committee Meeting, October 10, 2011

The Monetary Policy Committee (MPC) held an extraordinary meeting on 10th October, 2011 in response to unusual developments in the global and domestic economy, with potential negative impact on domestic liquidity conditions and renewed threats to price and exchange rate stability.

After considering and deliberating on all the reports, the Committee decided as follows:

  1. The monetary policy rate (MPR) is raised by 275 basis points from 9.25 per cent to 12.0 per cent (by a vote of 8 in favor and 1 in favor of status quo);
  2. Maintain the current symmetric corridor of +/-200 basis points around the MPR (by unanimous vote);
  3. The cash reserve ratio (CRR) is increased from 4.0 per cent to 8.0 per cent from the maintenance period beginning October 11, 2011 by a vote of 7 to 2 (2 members voted for a 6.0 per cent CRR);
  4. The net open position (NOP) is reduced from 5.0 per cent to 1.0 per cent of share-holders funds with immediate effect and with full compliance by Friday, October 14, 2011 (by unanimous vote); and
  5. It was further agreed that the reserve averaging method of computation be suspended in favour of daily maintenance until further notice.

 

Central Bank of Nigeria Communiqu� No. 67 of the 212th Monetary Policy Committee Meeting, January 4-5, 2010

The Monetary Policy Committee (MPC) met on 4th and 5th January, 2010 to review domestic economic conditions in 2009 and the challenges faced by the Nigerian economy against the backdrop of developments in the international economic and financial environments in order to chart the course for monetary and financial sector policies for 2010.

The Committee, thus, decided to:

  1. Leave the Monetary Policy Rate (MPR) unchanged at 6 per cent with the asymmetric corridor of interest rates remaining at 200 basis points above the MPR and 400 basis points below the MPR
  2. Extend CBN�s guarantee on all interbank transactions up till December 31, 2010. However, the CBN has the discretion to terminate the guarantee on a case-by-case basis as part of the ongoing reform process.
  3. Approve the Monetary Programme for 2010/2011 and the Monetary, Credit, Foreign Trade and Exchange Guidelines for Fiscal years 2010/2011.

 

Central Bank of Nigeria Communiqu� No. 66 of the Monetary Policy Committee Meeting, November 03, 2009

The Committee, thus, decided to:

  1. The Monetary Policy Rate (MPR) will remain unchanged at 6 per cent, but an asymmetric corridor of interest rates around the MPR is introduced. The rate on the standing lending facility will remain at 200 basis points above the MPR, while the rate on the standing deposit facility will be 400 basis points below the MPR.
  2. There will be quantitative easing to bridge the gap currently estimated at about N500 billion between the levels of the current monetary aggregates and the benchmark levels for 2009. The modalities for quantitative easing include investments in bonds to be issued by Asset Management Company (AMC). The setting up of AMC, however, is subject to the approval of the National Assembly. Other modalities include the redemption of promissory notes issued by the Federal Ministry of Finance as well as by the CBN in connection with the retirement of debt and liabilities arising from purchase and assumption of failed banks.
  3. Purchase of loans by banks under the AMC will be based on terms aimed at strengthening the balance sheets with a focus on asset quality, improving liquidity and capital adequacy as well as on reducing debt overhang relating to the stock market in order to stimulate activity in the capital market.
  4. With effect from November 16, 2009, the temporary ban placed by the CBN on the use of Bankers� Acceptances (BAs) and Commercial Papers (CPs) will be lifted. Guidelines will be issued by the CBN prior to that date.
  5. In view of the fact that the audit of banks have been concluded and adequate provisions have been made for non-performing loans and to stimulate credit growth and strengthen banks� balance sheets, the 1 per cent general provision on performing loans contained in the existing prudential guidelines is hereby waived for the year 2009 as a countercyclical measure. New prudential guidelines will be issued before the end of Q1 2010.

 

Monetary Policy Decisions

206th MPC Meeting of 11th December, 2008

The Monetary Policy Committee of the Central Bank of Nigeria met on
December 11, 2008. The Committee reviewed the major domestic and
international macroeconomic developments since the beginning of the year
2008. It noted that despite the stability in the economy during the period, there
were challenges in respect of developments in the international oil market
involving slack demand from advanced economies and declining oil prices that
could weaken Nigeria’s fiscal and external payments positions in 2009.

The Committee, thus, decided to:

  1. Leave the MPR unchanged at 9.75 percent;
  2. Reduce banks’ foreign exchange net open position from 20.0 to 10.0
    percent of shareholders funds with effect from Monday December 15,
    2008; and
  3. CBN to participate actively in the daily inter-bank foreign exchange
    market by buying and selling through the 2-way quotes.

 

205th MPC Meeting of 18th September, 2008

The Monetary Policy Committee of the Central Bank of Nigeria met on
September 18, 2008. The Committee reviewed the major domestic and
international macroeconomic developments in the first eight months of the year.
It noted that Nigeria’s economic fundamentals remained strong despite the
global financial turmoil. In order to ensure the smooth functioning of the
financial markets and the economy in general, the Committee decided to
lubricate the system.

The Committee, thus, decided to:

  1. reduce the MPR from 10.25 per cent to 9.75 per cent;
  2. reduce CRR from 4 per cent to 2 per cent with immediate effect;
  3. reduce the liquidity ratio from 40 per cent to 30 per cent;
  4. allow repo transactions against eligible securities for 90 days, 180 days
    and 360 days; and
  5. the CBN will now buy and sell securities through the two-way quotes.

 

204th MPC Meeting of 5th August, 2008

The Monetary Policy Committee of the Central Bank of Nigeria met on
August 5, 2008. The Committee reviewed the major domestic and
international macroeconomic developments in the first seven months of
2008. It observed that despite the stability in the exchange rate of the naira,
the macroeconomic outcomes were mixed as the key interest rates and
inflation maintained an upward trend.

The Committee decided as follows:

  1. The MPR will remain unchanged at 10.25 per cent since the core
    inflation is expected to remain at a relatively moderate level.
  2. After reviewing developments in the financial market and the
    misplaced perceptions that the interest rate trends are linked to the
    requirement of a common year-end, the MPC decided that the
    common year-end for banks would no longer be a requirement and
    therefore left to the decision to the discretion of the banks.
  3. In order to ensure a transparent pricing regime in the money market
    and thereby foster healthier competition, banks are required to fully
    disclose to the public their deposit rates as well as their base lending
    rates and other charges for all the sectors of the economy. These
    should be published on their respective websites and updated daily.
    The banks are required to report these rates to the CBN to enable the
    Bank to publish a summary of the rates for each deposit money bank
    every month.

 

203rd MPC Meeting of 2nd June, 2008
 
The Monetary Policy Committee of the Central Bank of Nigeria met on June 2, 2008. The Committee reviewed the major domestic and international macroeconomic developments in the first five months of the year.  It noted that despite the stability in the economy during the period, there were many uncertainties that could threaten the Central Bank’s objective of low and single digit inflation.
 
The Committee decided as follows:

  1.  strengthen the use of instruments such as open market operations and special sale of foreign exchange;
  2.  raise the MPR by 25 basis points from 10.0 per cent to 10.25 per cent;
  3.  increase the CRR by 100 basis points from 3.0 per cent to 4.0 per cent with effect from June 09, 2008; and
  4.  set up a technical committee to work out other intervention securities to further strengthen the effectiveness of liquidity management.
The reasons for the decisions included the upward oil and food price movements, the fiscal expansion, and the international financial market conditions.

 

202nd MPC Meeting of 1st April, 2008

The Monetary Policy Committee of the Central Bank of Nigeria met on April 1, 2008. The Committee reviewed the major domestic and international macroeconomic developments in the first quarter of the year. It noted that despite the stability in the economy during the quarter, there were many uncertainties that could threaten the single digit inflation objectives of the Bank. The Committee decided as follows to:

  1. raise the MPR by 50 basis points from 9.5 per cent to 10 per cent;
  2. issue treasury bills for liquidity management; and
  3. increase the sale foreign exchange as the need arises.

The reasons for the decisions included the current rate of inflation; the impact of that growth of monetary aggregates in 2007 on the first quarter of 2008; the impact of the continued inflow of foreign private capital into the economy and the actual and potential effect of the recent sharing of the naira equivalent of the excess crude oil revenue as well as the scheduled distribution of the second round in June, 2008. The proposed budget also contained significant increases in expenditure which would lead to fiscal deficits in the next two quarters.

 

201st MPC Meeting of February 2008

The Monetary Policy Committee of the Central Bank of Nigeria met on 5th February 2008 to review the major domestic and international macroeconomic developments and observed that the outlook for 2008 while being positive has many elements of uncertainty. The Committee, therefore, decided:

  1. To leave the Monetary Policy Rate (MPR) unchanged at 9.5 per cent
  2. To continue the use of open market operations (OMO) for liquidity management and appropriate exchange rate policies

MPC Meeting Decisions of Other Years

2007 | 2006 | 2005 | 2004 | 2003 | 1986 |

Read Frequently Asked Questions (FAQs) on Monetary Policy

Facts : 1/7/1959
Evolution of Departments:At inception, the organisational structure of the CBN was understandably simple consisting of two departments, namely, the General Manager's and the Secretary's Departments, with the appropriate division of labour as then percieved. The General Manager's Department was responsible for all the Department banking, currency issues, debt management and other operational functions of the bank while the Secretary's Department handled the administrative and staff matters, carried out some research into the economic and financial conditions, and collected and analysed relevant statistics for policy formulation.
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