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Reactions have continued to trail the decision of the Central Bank of Nigeria to retain the interest rate at 26.50 percent.

Economists and financial analysts have projected that Nigerians and businesses may continue to struggle with rising prices of goods and the high cost of borrowing following the development.

ZINGTIE reports that the governor of the apex bank, Olayemi Cardoso, announced the Monetary Policy Committee’s decision to retain the rates after the 305th MPC meeting held on Wednesday.

Accordingly, the CBN also retained the Standing Facilities Corridor around the MPR at +50/-450 basis points and maintained the Cash Reserve Requirement (CRR) for deposit money banks at 45.00 percent, merchant banks at 16.00 percent and non-TSA public sector deposits at 75.00 percent.

Cardoso said the decision was based on a comprehensive assessment of the risk outlook. The move comes as the country recorded two consecutive months of rising inflation. Recall that Nigeria’s headline inflation increased to 15.38 percent in March 2026 and 15.69 percent in April 2026.

However, Cardoso assured that the MPC remained confident that the current macroeconomic environment was strong enough to support a return to disinflation.

“The pass-through 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 stated in a communiqué after the 305th MPC meeting.

The Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, in a statement issued on Wednesday, commended the CBN’s decision to maintain interest rates and other monetary parameters.

The CEO of Financial Derivative Company, Bismark Rewane, also stated during an interview with Channels Television on Wednesday that the decision to retain the MPR was expected.

ZINGTIE reports that the CBN’s decision had an immediate impact on the Nigerian stock market, where investors recorded losses estimated at N1.62 trillion on Wednesday.

Meanwhile, at the foreign exchange market, the naira recorded a marginal gain of N0.5 on Wednesday, closing at N1,373.34 after several days of depreciation in the official market.

In separate exclusive interviews with ZINGTIE, the CEO of SD & D Capital Management, Gbolade Idakolo, and a professor of accounting and finance at Lead City University, Godwin Oyedokun, explained the implications of the CBN’s decision for businesses and Nigerians.

According to Idakolo, the decision to retain rates reflects a cautious move amid prevailing global uncertainties.

“The decision of the CBN to retain the interest rate at 26.50% is a very cautious decision given the present global economic trend caused by the war between the USA, Israel, and Iran.

“Definitely, the causative factors of the present rise in inflation are temporary and could ease once normalcy returns to the global economy, especially oil trade and shipping.

“The economic implications for Nigerians are very clear because presently there is no end in sight for food inflation caused by insecurity and logistic challenges.

“The price of goods and services will also continue to move in an upward trajectory because of high shipping costs and crude oil prices. The Naira is also struggling to maintain balance with the dollar, so there is a tendency for the diminishing value of the Naira.

“In all this, as the CBN struggles to stabilize the economy by strengthening the Naira and reducing inflation whilst rebuilding investors’ confidence, Nigerians will have to grapple with the multifaceted challenges affecting the economy,” he told ZINGTIE.

On his part, Oyedokun said the decision to retain interest rates reflects a cautious effort to balance inflation control with economic stability amid Nigeria’s persistent economic challenges.

According to him, the decision may strengthen investor confidence and support the naira through attractive fixed-income yields, although borrowing costs would remain high for businesses and households.

He noted that immediate relief may remain limited as food prices, transportation costs, electricity challenges and weak purchasing power are expected to persist in the short term.

“The decision of the Central Bank of Nigeria Monetary Policy Committee (MPC) to retain the Monetary Policy Rate at 26.50 percent reflects a cautious attempt to balance inflation control with economic stability amid Nigeria’s persistent economic challenges.

“The CBN appears determined to sustain recent gains in exchange-rate stability and inflation moderation rather than risk premature monetary easing.

“While the decision may strengthen investor confidence and support the naira through attractive fixed-income yields, it also means borrowing costs will remain high for businesses and households.

“Small and medium-scale enterprises, manufacturers, and investors are likely to continue facing difficulties accessing affordable credit, which could slow business growth, job creation, and economic expansion.

“For ordinary Nigerians, immediate relief may remain limited as food prices, transportation costs, electricity challenges, and weak purchasing power are expected to persist in the short term. However, the policy could help prevent inflationary pressures from worsening if complemented by effective fiscal reforms and improved economic coordination.

“Ultimately, monetary policy alone cannot resolve Nigeria’s structural economic problems. Sustainable recovery will require improved security, a stable power supply, infrastructure development, enhanced agricultural productivity, and policies that reduce the cost of doing business.

“The MPC’s decision, therefore, represents a cautious ‘wait-and-see’ approach aimed at preserving macroeconomic stability while broader reforms gradually take effect,” he told ZINGTIE.

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