Nigeria Interest Rate 2007-2014 | Data | Chart | Calendar | Forecast

The benchmark interest rate in Nigeria was last recorded at 12 percent. Interest Rate in Nigeria averaged 9.60 Percent from 2007 until 2014, reaching an all time high of 12 Percent in October of 2011 and a record low of 6 Percent in July of 2009. Interest Rate in Nigeria is reported by the Central Bank of Nigeria.

   
 
 

Nigeria Interest Rate


Actual Previous Highest Lowest Dates Unit Frequency
12.00 12.00 12.00 6.00 2007 - 2014 Percent Daily
In Nigeria, interest rate decisions are taken by The Central Bank of Nigeria. The official interest rate is the Monetary Policy Rate (MPR). This page provides - Nigeria Interest Rate - actual values, historical data, forecast, chart, statistics, economic calendar and news. Content for - Nigeria Interest Rate - was last refreshed on Thursday, October 23, 2014.


Nigeria Leaves Monetary Policy Unchanged


At its September meeting, Nigeria’s central bank decided to hold the benchmark interest rate at 12.0 percent, showing concerns about high banking system liquidity and its potential effects on inflation and the exchange rate.

Excerpts from the statement by the Central Bank of Nigeria:

The MPC expressed satisfaction with the relative stability in the economy while also noting the risks that lie ahead. The key risks include: the possibility of capital reversals as the Fed’s Quantitative Easing in the US finally ends in October, amidst dwindling oil output and declining oil prices, domestic security challenges and upward trending headline inflation. The Committee further expressed concern about high banking system liquidity and its potential effects on inflation and the exchange rate. The policy challenges, the Committee noted, would include sustaining the stability of the naira exchange rate, managing the vulnerability to capital flow reversal, building fiscal buffers to insure against global shocks, managing inflation and exchange rate expectations and safeguarding the financial system stability as well as a buildup in election related spending. 

The Committee welcomed the efforts by government to address some of the constraints and risks to economic activity like the insurgency in the North-East and the Ebola Virus Disease epidemic. It noted that as progress is made in these areas and in respect of other constraints like power and improving SME financing, the outlook for growth appears bright and prospects for upward price pressure would be moderated. The Committee further noted that the restrictive stance of monetary policy provided important defenses against structural liquidity in the banking system and also reaffirmed the willingness to play a key role in managing expectations around exchange rate and inflation vulnerabilities. Consequently, adequate consideration would need to be accorded the goal of reining-in banking system liquidity to safeguard the objective of price stability. 

The Committee was, however, concerned that banks were holding large excess reserves averaging over N300 billion even when there were ample opportunities for productive and profitable lending to the real sector of the economy. The concern was further strengthened by the reality of injecting an additional N866 billion into the system through the redemption of maturing AMCON bonds in October. Given the apathy to lending, banks may be inclined more to placing these new funds in the SDF or use it to increase pressure on the exchange rate. The Committee advised the Bank to explore ways of encouraging banks to lend such excess reserves to the real sector.

In light of the foregoing and consideration of other key risk factors, the Committee was of the view that the direction for policy in the short- to medium term would be either to retain the current tight stance of monetary policy or further tighten monetary policy.


Central Bank of Nigeria | Joana Taborda | joana.taborda@tradingeconomics.com
9/19/2014 6:05:28 PM


Recent Releases

Nigeria Leaves Benchmark Interest Rate on Hold at 12%
At its July meeting, Nigeria’s central bank decided to hold the benchmark interest rate at 12.0 percent, but hinted a gradual rate cut in the next years as price pressures ease. Published on 2014-07-23

Nigeria Leaves Monetary Policy Unchanged in May
At its May 20th, 2014, Nigerian Monetary Policy Committee decided to hold the benchmark interest rate at 12.0 percent, as inflation remains within single digit, while exchange rate stability was maintained. Published on 2014-05-20


Calendar GMT Country Event Reference Actual Previous Consensus Forecast
2014-03-25 01:30 PM Nigeria
Interest Rate Decision
12.0% 12.0% 12%
2014-05-20 02:20 PM Nigeria
Interest Rate Decision
12.0% 12.0% 12%
2014-07-22 02:30 PM Nigeria
Interest Rate Decision
12.0% 12.0% 12% 12%
2014-09-19 02:40 PM Nigeria
Interest Rate Decision
12% 12.0% 12.0% 12%
2014-11-25 12:00 PM Nigeria
Interest Rate Decision
12% 12%


Nigeria Money Last Previous Highest Lowest Unit
Interest Rate 12.00 12.00 12.00 6.00 Percent [+]
Money Supply M0 1497142.11 1517640.29 1776813.16 193939.30 Nigerian Naira Million [+]
Money Supply M1 6587283.17 6741177.08 7420946.18 396991.90 Nigerian Naira Million [+]
Money Supply M2 15928377.70 15907453.16 15973276.31 648506.60 Nigerian Naira Million [+]
Foreign Exchange Reserves 3227836.01 3198870.83 3816502.55 88635.00 NGN Million [+]