FX.co ★ Nigeria Holds Key Policy Rate at 27.5%

On May 20, 2025, Nigeria's central bank opted to maintain the benchmark lending rate at 27.50%, sustaining its policy direction for the second consecutive meeting. The decision aims to attain a more precise understanding of the inflationary path. While Nigeria’s annual inflation rate slightly decreased to 23.71% in April 2025 from 24.23% in March, it continues to be troublingly high, displaying inconsistency since the recalibration earlier this year. Recent declines in oil prices, a crucial export for Nigeria, alongside the naira's depreciation since April—triggered by the United States' implementation of a 10% tariff on its trading partners, unsettling global markets—have contributed to the prevailing uncertainty in the inflation forecast.