Cardoso: Nigerian economy largely resilient to external shocks, reflects gains from prior reforms by fiscal, monetary authorities Says unforeseen global headwinds delay CBN’s single-digit inflation target by January 2027, banks to sustain efforts to reign in prices•Declares painful reforms yielding positive outcomes, paving way for better days ahead, insists current exchange rate supports competitiveness External reserves hits $52.52bn as of July 17, 2026, from $50.47bn in May James Emejo, Deborah Adekoya in Abuja and Nume Ekeghe in Lagos The Central Bank of Nigeria (CBN), yesterday, decided to leave the Monetary Policy Rate (MPR), the benchmark interest rate, unchanged at 26.5 per cent, as well as the standing facilities corridor around MPR at +50/-450 basis points.CBN also left the Cash Reserve Requirement (CRR) for Deposit Money Banks (DMBs) unchanged at 45 per cent, merchant banks at 16 per cent, and 75 per cent for non-TSA public sector deposits. Speaking at the end of the two- day meeting of the Monetary Policy Committee (MPC) in Abuja, CBN Governor, Mr. Olayemi Cardoso, said the decision to maintain the current policy stance followed a thorough assessment of the balance of risks.Cardoso said although headline inflation moderated marginally in June 2026, global uncertainties had heightened due mainly to the renewed hostilities in the Middle East. He said, “In view of the evolving developments, maintaining a cautious monetary policy stance remains appropriate.”The central bank governor highlighted the recent resurgence of hostilities in the Middle East with particular attention to its spill-over effects on global energy prices and the potential pass-through to domestic inflation. Nonetheless, he stated that available evidence indicated that the Nigerian economy had remained largely resilient to the external shocks, reflecting the gains from prior reforms implemented by the fiscal and monetary authorities. Cardoso stated that maintaining the current monetary policy stance will provide an opportunity to closely monitor incoming data and assess the trajectory of inflation to guide future policy decisions. According to him, “The MPC acknowledged the federal government’s renewed commitment to strengthening policy coordination, with particular emphasis on the ongoing collaboration with the monetary authority which has helped to moderate the impact of the Middle East crisis on the domestic economy.”He stressed that the committee recognised that greater alignment between fiscal and monetary policies would enhance policy effectiveness and support the achievement of overall macroeconomic objectives. To further strengthen macroeconomic fundamentals, the apex bank also underscored the potential benefits of Executive Order 9. The CBN also commended government’s renewed efforts to improve crude oil production and encouraged relevant agencies to strengthen the implementation of reforms to maximise the potentials in other sectors, including solid minerals, to complement government earnings. MPC further welcomed the positive outcome of the banking sector recapitalisation exercise, acknowledging the improvement in the resilience of the banking system as reflected in key prudential and financial soundness indicators. MPC urged the central bank to sustain effective surveillance to preserve financial sector soundness and mitigate potential risks to financial stability. The committee observed that headline inflation (year-on-year) eased marginally to 15.91 per cent in June 2026, from 15.93 per cent in May 2026, ending the three consecutive months of uptick in price levels. Cardoso, who read the committee’s communique, stressed that the decline resulted from a decrease in the non-food component, which offset the increase in food inflation. Food inflation rose to 17.52 per cent in June 2026, from 16.96 per cent in May 2026, reflecting supply constraints. However, core inflation moderated to 15.92 per cent in June 2026, from 16.82 per cent in May 2026, largely on the back of exchange rate stability.Similarly, the 12-month average inflation rate sustained its decline to 17.63 per cent in June 2026, from 18.36 per cent in May 2026, marking the sixth month of consecutive moderation and reflecting a slower pace of price increases over the medium term. Cardoso said gross external reserves rose to $52.52 billion as of July 17, 2026, from $50.47 billion as at end-May 2026, mainly as a result of receipts from crude oil-related taxes and third-party inflows. He said this was sufficient to finance about 11 months of imports of goods and services, surpassing the international benchmark of three months cover. Cardoso also projected inflation to moderate further in the medium term on the back of continued stability in the foreign e
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