The Central Bank of Nigeria (CBN), yesterday, expressed concerns over plunging oil prices and mounting geopolitical tensions, warning that these risks could strain fiscal revenues and disrupt budget implementation.
Despite the challenges, the Monetary Policy Committee held the MPR steady at 27.5 per cent, with Governor Yemi Cardoso attributing the naira’s resilience and balance of payments surplus to timely reforms and strong financial buffers.
Cardoso, who briefed journalists after the two-day MPC meeting in Abuja, said the decision to maintain the key interest rate was driven by the need to consolidate recent improvements in some key macroeconomic indicators, which were expected to support overall moderation in prices in the near to medium term.
These, he said, included the progressive narrowing of the gap between the Nigerian Foreign Exchange Market (NFEM) and the Bureau De Change (BDC) windows, a positive balance of payment position, and easing price of Premium Motor Spirit (PMS), adding that members were satisfied with the progressive moderation in food inflation and commended the government for implementing measures to increase food supply as well as stepping up the fight against insecurity in farming communities.
