Nigeria Interest Rate2007-2020 Data | 2021-2022 Forecast | Calendar | Historical

The Central Bank of Nigeria left its monetary policy rate unchanged at 11.5% during its November meeting, unexpectedly trimming it by 100 bps on September 21st. The decision reflected the priority to further stimulate a contracting economy despite quickening inflation, which has remained above the Bank’s target range for over five years now. Nigeria slipped into its second recession in four years in the third quarter of 2020, amid the twin impact of COVID-19 restrictions and low oil prices. Governor Emefiele said the bank was "cautiously optimistic" of positive growth in the fourth quarter of the year and expected Nigeria to exit recession in the first quarter of 2021. Policymakers noted that inflation continued to climb to an over two-year high of 14.23% in October, but it should start moderating in the medium term.

The Central Bank of Nigeria unexpectedly slashed its monetary policy rate by 100 bps to 11.5% during its September 2020 meeting, bringing borrowing costs to the lowest since 2016. This was the second rate cut this year and came even as inflation has been above target since 2015, to continue supporting the economy that plunged 6.1% in the Q2 hit by the global pandemic. Meanwhile, headline inflation continued to climb to an over two-year high of 13.2% in August, pushed by higher food prices that remain under pressure due to floods, a weaker currency and clashes between herders and farmers. The Committee said that the economy may continue to grapple with the effects of the pandemic throughout the rest of the year, projecting growth in Q4 2020, or at least by Q1 2021. The central bank stressed the urgent need for a combination of broad-based monetary and fiscal policy measures to curb the rise in inflation and contraction in output growth.

The Central Bank of Nigeria left its benchmark interest rate unchanged at 12.5% during its July 2020 meeting after unexpectedly trimming it by 100 bps on May 28th. Policymakers said that the previous rate cut was having a positive impact as credit growth had increased significantly in the economy. The Committee expects that the Nigerian economy may record negative quarterly GDP growth in the 2nd quarter of 2020, but there is cautious optimism that the year may end in marginal negative territory, with strong recovery prospects in 2021. The Commiittee noted that the current efforts by the Federal Government to contain the pandemic would reposition the economy on a sustainable path of rapid recovery. Policymakers added that was mindful of the cut in policy rate and the need to allow time for its effect to permeate the economy.

The Central Bank of Nigeria slashed its monetary policy rate by 100 bps to 12.5% during its May 2020 meeting, surprising markets that expected no change. It was the first rate cut since March of 2019. The decision aimed at reviving the economy battered by the coronavirus pandemic and collapsing oil prices despite persistent inflationary pressures. Policymakers explained that a lower rate would stimulate credit expansion to critically important sectors and thus support employment. Governor Emefiele added that the economy would contract in the second and third quarter of the year but recover in the fourth quarter helped by fiscal and monetary measures. Meanwhile, inflation continued to climb to a two-year high of 12.34 percent in April, persistently above the target range of 6-9%.