Bank resumes rate cuts after brief pause: In mid-December, the Central Bank voted to cut the bank rate to 3.75%,...
Policy Interest Rate in Nigeria
The Policy Interest Rate (%, eop) ended 2024 at 27.50%, up from the 18.75% end-2024 value and up from the reading of 13.00% a decade earlier. For reference, the average interest rate in Sub-Saharan Africa was 14.31% at end-2024. For more information on interest rate, visit our dedicated page.
Nigeria Interest Rate Chart
Note: This chart displays Policy Interest Rate (%) for Nigeria from 2014 to 2025.
Source: Macrobond.
Nigeria Interest Rate Data
| 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|
| Monetary Policy Rate (%, eop) | 11.50 | 11.50 | 16.50 | 18.75 | 27.50 |
November’s hold disappoints markets
Central Bank stands pat at final 2025 meeting: On 25 November, the Central Bank of Nigeria held fire, leaving its monetary policy rate at 27.00%. The hold surprised markets, as they had penciled in a final cut this year.
Monetary policy rate unchanged to support disinflation: Inflation was the key domestic factor that influenced the Central Bank’s decision to stand pat. While price pressures continued to ease, marking a seventh consecutive decline in October, the Central Bank governor noted that they remained too high. A cut was therefore removed from the cards to support inflation falling to single digits, following several multi-decade highs last year spurred by President Bola Tinubu's actions to devalue the naira and remove energy subsidies.
Interest rate cuts likely to resume ahead: Void of specific forward guidance regarding future interest rate decisions, the release reiterated the Bank’s commitment to achieving price stability. That said, the Central Bank will likely resume rate reductions next year as past hikes and an improved harvest help to soften inflation ahead. The Bank will reconvene on 23–24 February next year.
Consensus Forecasts and Projections for the next ten years
How should you choose a forecaster if some are too optimistic while others are too pessimistic? FocusEconomics collects Nigerian interest rate projections for the next ten years from a panel of 4 analysts at the leading national, regional and global forecast institutions. These projections are then validated by our in-house team of economists and data analysts and averaged to provide one Consensus Forecast you can rely on for each indicator. By averaging all forecasts, upside and downside forecasting errors tend to cancel each other out, leading to the most reliable interest rate forecast available for Nigerian interest rate.
Download one of our sample reports to visualize what a Consensus Forecast is and see our Nigerian interest rate projections.
Want to get access to the full dataset of Nigerian interest rate forecasts? Send an email to info@focus-economics.com.
Latest Global Monetary Policy News
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