The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has retained all key monetary policy parameters, opting to sustain its tight policy stance as it seeks to consolidate gains in inflation moderation, preserve exchange rate stability and shield the economy from growing global uncertainties.
At the end of its 306th meeting held on July 20 and 21, 2026, the committee left the Monetary Policy Rate (MPR) unchanged at 26.5 per cent, while also retaining the asymmetric corridor around the MPR at +500/-100 basis points, the Cash Reserve Ratio (CRR) at 40.5 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, and the Liquidity Ratio at 30 per cent.
Addressing journalists after the meeting, CBN Governor and Chairman of the MPC, Olayemi Cardoso, said the committee unanimously agreed to maintain the current policy stance after a comprehensive assessment of domestic and global economic conditions.
According to him, although Nigeria recorded a modest decline in headline inflation in June, external risks remain elevated, making policy continuity the most prudent option.
“The committee’s decision to maintain the current policy stance followed a thorough assessment of the balance of risks. Although headline inflation moderated marginally in June 2026, global uncertainties have heightened due mainly to the renewed hostilities in the Middle East. In view of the evolving developments, maintaining a cautious monetary policy stance remains appropriate,” Cardoso said.
The governor noted that despite growing geopolitical tensions and global economic uncertainty, Nigeria’s economy has continued to demonstrate resilience due to reforms implemented by both fiscal and monetary authorities.
He said available economic indicators suggest that recent policy reforms have strengthened the country’s ability to absorb external shocks.
“Available evidence suggests that the Nigerian economy has remained largely resilient to the external shocks, reflecting the gains from prior reforms implemented by the fiscal and monetary authorities,” he added.
Cardoso also highlighted improved collaboration between the Federal Government and the Central Bank, describing stronger policy coordination as essential for achieving macroeconomic stability.
According to him, members of the committee agreed that greater alignment between fiscal and monetary policies would improve policy effectiveness and support broader economic objectives.
The MPC’s decision follows the latest inflation report showing that Nigeria’s headline inflation fell to 15.91 per cent in June 2026, marking the first decline in three months.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise (CPPE), Dr. Muda Yusuf, described the MPC’s decision as consistent with prevailing economic realities.
According to him, although headline inflation has largely stabilised and core inflation continues to moderate, renewed increases in food prices justify maintaining the current policy stance.
“The moderation in headline inflation is encouraging, but food inflation has resumed an upward trend. Given the prevailing uncertainties, retaining the current interest rate is the most appropriate decision until inflation shows a more sustained decline,” Yusuf said.
Despite supporting efforts to curb inflation, manufacturers expressed concern over the impact of high interest rates on production and investment.
Director-General of the Manufacturers Association of Nigeria (MAN), Segun Ajayi-Kadir, said elevated borrowing costs continue to constrain industrial growth by limiting access to affordable financing.
He urged the CBN to complement its anti-inflation strategy with targeted intervention funds and concessionary lending schemes for productive sectors.
According to him, lower financing costs would encourage expansion, increase local production and improve the competitiveness of Nigerian manufacturers.
Investment analysts said the MPC’s decision provides certainty for financial markets and reinforces confidence in Nigeria’s monetary policy framework.
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Naira rallies as foreign reserves near $52 billion mark
By Blessing Anaro
Lagos
The naira rebounded as the country’s foreign exchange (forex) reserves surged near a record $52 billion, according to data from the Central Bank of Nigeria (CBN).
The local currency has been hovering above N1380 per dollar in the last five trading sessions due to tight US dollar inflows at the Nigerian Foreign Exchange Market (NFEM).
Daily forex data released at the official window showed the spot rate closed at N1380.1093 per US dollar, rising from N1380.1847 quoted at the beginning of the trading session.
Forex rates hovered between N1378.5000 and N1382.9900 in the official window as financial institutions’ intermarket FX activities and turnover eased on Monday.
The CBN disclosed that NFEN interbank FX turnover settled at $266.227 million, about 8% lower than the previous close of $287.832 million. Also, the number of deals at the interbank for3x market declined to 68 from 106, according to an official release from the authority.
The Naira depreciated marginally at the NFEM window last week, weakening by 0.04 per cent w/w to close at N1,380.18/$, compared with N1,379.62/$ in the previous week.
Forex movement reflected some early pressure on the domestic currency, with the Naira weakening over the first two trading sessions to an intra-week low of N1,383.08/$.
However, the currency recovered gradually over the remainder of the week, retracing part of its losses and ultimately closing only marginally weaker than the previous week’s level.
In the parallel market, the currency appreciated by 0.35 per cent to close at N1,415.00/$ from N1420/$ as recorded in the previous week.
Updated data from the CBN showed Nigeria’s gross foreign exchange reserves increased to $51.92 billion as of July 16, 2026, reflecting continued improvements in the country’s external position.
A slew of analysts predict further increases will lift the gross balance above $52 billion this week, the highest seen since 2009.
The naira is expected to trade within a narrow range, supported by sustained foreign exchange inflows and the CBN’s continued market interventions, helping to cushion pressure from sustained forex demand.
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Relief for Nigerians as meter makers drop lawsuit, meter rollout to resume
By Benjamin Umuteme
Abuja
The Association of Meter Manufacturers of Nigeria (AMMON) yesterday withdrew its lawsuit against the Federal Government, clearing the way for procurement of 1.55 million smart meters and allowing stalled metering programmes to resume.
The withdrawal was filed as a Notice of Discontinuance at the Federal High Court in Kano after intervention by Minister of Power Joseph Tegbe and a high‑level meeting with AMMON and agencies including the Bureau of Public Enterprises and the Transmission Company of Nigeria.
“The meeting produced a mutually agreeable solution that respects local participation while adhering to competitive procurement rules. We have reached a practical settlement that protects jobs and secures the financing needed to close our metering gap,” Tegbe said.
AMMON had obtained an injunction in April 2026 that halted bidding on the Distribution Sector Recovery Programme (DISREP), Meter Acquisition Fund (MAF 3) and the Presidential Metering Initiative (PMI). The association’s decision to discontinue the suit ends the legal impasse, officials said, allowing the government’s metering interventions to proceed at full pace.
“We welcome the government’s commitment to our concerns,” an AMMON spokesperson said. “With assurances on procurement transparency and local content, we are confident this outcome supports both industry growth and consumer interests.”
Government sources said the resolution balances the administration’s “Nigeria First” push for industrial participation with the need to meet international procurement standards and unlock financing. The move was described as consistent with President Bola Ahmed Tinubu’s Renewed Hope Agenda to boost industrial self‑reliance and accelerate power sector reforms.
Closing the metering gap is expected to strengthen revenue collection for distribution companies and reduce estimated billing that has long frustrated consumers.
“This agreement is a significant step towards reliable, accountable billing and improved service delivery,” said a senior Ministry official.
With the injunction lifted, procurement can recommence and meter deployment across the country is set to accelerate, delivering relief to millions of electricity customers.
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Domestic equities close in bullish run, gain N307bn
By Amaka Ifeakandu
Lagos
The nation’s equities market on Tuesday remained on a growth trajectory, appreciating by N307 billion as bull dominated trading activities for the day.
Market capitalization of listed equities increased by 0.19 per cent to N159.119 trillion from N158.812 trillion reported the previous day.
The NGX All Share Index also appreciated by 475.60 basis points to 246659.56 points from 246183.96 points it closed on Monday.
The market breadth was positive with 31 advancers against 20 decliners, bringing year to date return to 58.67 per cent.
The trading for the day showed that UPDReit led gainers table with 9.86 per cent to close at N11.70 per unit, Thomas way followed with a gain of 9.73 per cent to close at N3.72 per unit, Ikeja Hotel added 9.53 per cent to close at N46.55 per unit, TIP increased by 9.52 per cent to close at N33.95 per share, Neimeth International pharmaceutical added 9.47 per cent to close at N9.25 per unit.
On the contrary, Mecure Plc topped losers’ chart, dropping by 9.95 per cent to close at N76.95 per unit, HMCell trailed with a loss of 9.86 per cent to close at N3.29 per share, CMFC down by 9.85 per cent to close at N3.02 per share, Trans Express fell by 9.68 per cent to close at N2.80 per share. HoneyWell flour Nigeria Plc dipped by 5.04 per cent to close at N16.00.
An analysis of the investment showed that Volume of trades declined by 6.313 million, representing 0.74 per cent as investors traded 845.287 million shares against 851.630 million reported the previous day. Value of transactions went down by 7.29 per cent to N45.976 billion in 48997 deals.
Access Holdings Company led market activities with 331.132 million shares valued at N8.507 billion, FirstHoldco followed with account of 69.091 million shares cost N7.286 billion, FCMB group traded 43.796 million shares worth N485.591 million, Zenith Bank exchanged 35.905 million shares valued at N4.185 billion, UBA traded 31.992 million shares cost N1.525 billion
