Nigerians Face Continued Hardship As CBN Retains Interest Rate at 26.50%

Economic analysts and financial experts have reacted to the decision by the Central Bank of Nigeria to retain the country’s benchmark interest rate at 26.50 percent, warning that businesses and ordinary Nigerians may continue to struggle with rising living costs and expensive borrowing conditions.

CBN Governor Olayemi Cardoso announced the decision on Wednesday after the bank’s 305th Monetary Policy Committee meeting.

The apex bank also retained other monetary policy parameters, including the Standing Facilities Corridor around the Monetary Policy Rate at +50/-450 basis points. The Cash Reserve Requirement was left unchanged at 45 percent for deposit money banks, 16 percent for merchant banks, and 75 percent for non-TSA public sector deposits.

Cardoso said the committee based its decision on an assessment of current economic risks and maintained confidence that inflationary pressures could gradually ease under existing reforms.

Nigeria’s inflation rate has risen for two consecutive months, climbing to 15.38 percent in March and 15.69 percent in April 2026.

According to Cardoso, reforms already introduced by the CBN have helped reduce the impact of global energy and commodity price shocks on the domestic economy.

“The MPC was convinced that the essential conditions for price stability remain firmly in place,” he stated in a communique issued after the meeting.

The decision drew mixed reactions from economists.

Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, commended the CBN for maintaining the current rates, while financial analyst Bismark Rewane said the outcome was largely expected.

However, some experts warned that the policy means Nigerians may not experience immediate economic relief.

Chief Executive Officer of SD & D Capital Management, Gbolade Idakolo, described the decision as a cautious response to global economic uncertainties, particularly tensions involving the United States, Israel and Iran.

According to him, Nigerians will continue to face rising prices due to insecurity, logistics challenges, high shipping costs and increasing crude oil prices.

“The price of goods and services will continue to rise, while the naira is also struggling to maintain stability against the dollar,” he said.

Professor of Accounting and Finance at Lead City University, Godwin Oyedokun, also said the policy reflects a “wait-and-see” strategy aimed at protecting macroeconomic stability.

He noted that while the decision may boost investor confidence and support the naira through attractive yields in the fixed-income market, it also means businesses and households will continue to face high borrowing costs.

Oyedokun warned that small businesses, manufacturers and investors may struggle to access affordable credit, potentially slowing job creation and economic growth.

He added that challenges such as high food prices, transportation costs, electricity issues and weak purchasing power are likely to persist in the short term.

Meanwhile, the Nigerian stock market reacted negatively to the announcement, with investors reportedly losing about N1.62 trillion on Wednesday.

At the foreign exchange market, however, the naira recorded a slight gain, closing at N1,373.34 against the dollar in the official market.