Five members of the Central Bank of Nigeria’s Monetary Policy Committee (MPC) voted for a 50-basis-point reduction in the Monetary Policy Rate (MPR) at the committee’s November 2025 meeting, citing sustained disinflation, stronger external buffers and improving growth conditions.
This was revealed in their personal statements released by the apex bank on its website on Wednesday.
The members who voted for a rate cut are a former Executive Director at Fidelity Bank Plc, Aku Odinkemelu; economist and policy expert, Aloysius Ordu; Managing Director of EcoDonini Solutions Ltd, Bandele Amoo; former Director-General of the Securities and Exchange Commission, Lamido Yuguda; and renowned economist and university don, Prof Murtala Sagagi.
The five dissenting members, who represent 41.7 per cent of the 12-member committee, proposed reducing the MPR from 27.0 per cent to 26.5 per cent. They also recommended adjusting the asymmetric corridor to plus 50 and minus 450 basis points, while retaining all other prudential parameters.
The committee, however, voted by majority to hold the benchmark interest rate steady at 27.0 per cent, reflecting continued caution over inflationary risks.
Explaining her position, Odinkemelu said Nigeria’s disinflation process had become entrenched and broad-based, justifying a modest easing of policy.
“I vote to reduce the Monetary Policy Rate by 50 basis points from 27.00 per cent to 26.50 per cent,” she said.
She pointed to seven consecutive months of headline inflation moderation, improved food supply conditions and continued accumulation of external reserves, arguing that a measured rate cut would support recovery in productive sectors without undermining price stability.
Ordu anchored his vote on both global and domestic developments, noting that several advanced and emerging market central banks had begun cautious easing cycles amid moderating inflation. He cited Nigeria’s improved external position, stronger capital inflows, exchange rate stability and easing inflation as justification for a calibrated policy adjustment.
Amoo said easing was necessary to address weak credit transmission to the real economy. While acknowledging persistent inflation risks, he argued that a small rate cut, supported by strict cash reserve requirements, could encourage banks to lend more effectively to productive sectors such as agriculture and manufacturing, particularly ahead of seasonal demand pressures.
Yuguda also supported a rate cut, describing the case for easing as compelling. He cited progress in inflation moderation, robust non-oil sector growth and improving foreign reserves, adding that the proposed cut was modest and forward-looking, aimed at consolidating growth momentum while maintaining monetary discipline.
Sagagi framed his position around growth and liquidity dynamics, saying the lagged effects of previous monetary tightening were already yielding results.
“I therefore vote for a 50 basis point reduction in the MPR to spur growth,” he said, adding that the asymmetric corridor would help prevent excess liquidity from destabilising the exchange rate or reigniting inflation.
Despite their position on the policy rate, the five members agreed on retaining other key monetary tools. They supported maintaining the Cash Reserve Ratio at 45 per cent for deposit money banks, 16 per cent for merchant banks and 75 per cent on non-Treasury Single Account public sector deposits, while keeping the Liquidity Ratio at 30 per cent.
They also endorsed narrowing the standing facilities corridor to plus 50 and minus 450 basis points to discourage banks from parking idle funds at the CBN and to promote interbank activity and real sector lending.
The MPC majority, however, opted to retain the MPR at 27.0 per cent, stressing the need to consolidate gains from previous tightening as inflation remains in double digits and fiscal-driven liquidity risks persist.
The committee noted that although headline inflation eased to 16.05 per cent in October 2025, risks remained from seasonal spending, election-related fiscal pressures and potential exchange rate shocks.
The voting pattern underscores a growing internal debate within the MPC as macroeconomic conditions improve. While the majority remains cautious, the sizeable minority in favour of easing suggests future meetings could tilt towards gradual rate cuts if disinflation continues and external stability holds.
The next MPC meeting is scheduled for February 23 and 24, 2026, with analysts projecting a rate cut following the further slowdown in inflation to 15.15 per cent in December 2025.
