Nigeria Interest Rate

The benchmark interest rate in Nigeria was last recorded at 12 percent. Interest Rate in Nigeria is reported by the Central Bank of Nigeria. Interest Rate in Nigeria averaged 9.43 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. 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. 2014-04-16

Actual Previous Highest Lowest Forecast Dates Unit Frequency
12.00 12.00 12.00 6.00 12.00 | 2014/04 2007 - 2014 Percent Monthly

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Nigeria Interest Rate
LIST BY COUNTRY


CALENDAR GMT Country Event Reference Actual Previous Consensus Forecast
2013-07-23 02:30 PM Nigeria
Interest Rate Decision
12.0% 12.0% 12%
2013-09-24 02:30 PM Nigeria
Interest Rate Decision
12.0% 12.0% 12%
2013-11-19 01:32 PM Nigeria
Interest Rate Decision
12.0% 12.0% 12%
2014-03-25 01:30 PM Nigeria
Interest Rate Decision
12.0% 12.0% 12%
2014-05-20 12:00 PM Nigeria
Interest Rate Decision
12.0% 12%
2014-07-22 12:00 PM Nigeria
Interest Rate Decision
12%
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Money Last Previous Highest Lowest Forecast Unit
Foreign Exchange Reserves 7069489900.00 2013-11-30 7172709606.00 8045132422.00 2571524000.00 7538241246.89 2013-12-31 Thousand NGN [+]
Interest Rate 12.00 2014-03-25 12.00 12.00 6.00 12.00 2014-04-30 Percent [+]
[+]


Nigeria Central Bank Leaves Rate on Hold and Hikes Reserve Ratio

The Monetary Policy Committee decided on March 25th to hold the interest rate at 12 percent, as the Central Bank agreed to continue the existing tight monetary policies. It also decided to increase the cash reserves requirement for private sector deposits by 300 bps to 15 percent.

Excerpts from the statement by the Central Bank of Nigeria:

Based on the 2013 favorable performance, output growth has been projected at 7.7 per cent for fiscal 2014. The Committee observed that the relatively robust growth projections, despite the sluggish global recovery, reflected the continuing favorable conditions for increased agricultural production, sustained outcome of the banking sector reforms as well as the initiatives of the government to stimulate the real economy. 

Gross official reserves as at March 2014 stood at US$37.83 billion compared with US$42.85 billion at end-December 2013. The decrease in the reserves level was driven largely by the increased funding of the foreign exchange market in the face of intense pressure on the Naira and the need to maintain stability. 

The Committee unanimously agreed that a continuation of a tight monetary policy was needed to consolidate recent gains. Recent resurgence of core inflation in spite of the downward trend in headline inflation reinforces this position. Thus, prudent monetary stance would also facilitate better reserve and exchange rate management in an environment where Fed tapering increases pressure on emerging economies financial markets.

On a positive note, inflation forecasts indicate that food inflation may not grow beyond current levels, especially with bumper harvests expected in 2014. However, core inflation could rise. The Committee noted that frontier markets were positioning themselves to attract higher capital inflows by raising their policy rates to contain inflation and also remain competitive. Oil prices remained relatively high while production was improving, and there were signs of accretion to external reserves. The Committee also expressed concern over the sudden surge in domiciliary account balances which may offset the gains from imposing 75 per cent CRR on public sector funds.

In the light of the foregoing, the MPC considered the success of Monetary Policy in attaining price and exchange rate stability; the potential headwinds in 2014; the ultimate goal of transiting to a truly low – inflation environment; and the need to retain portfolio flows. The Committee unanimously voted for further tightening of monetary policy but were divided on the instruments. While some voted for an increase in the MPR to retain and attract more inflows, other members felt that such increase could impact access to credit and domestic growth negatively.

Central Bank of Nigeria | Isabel Felino | isabel.felino@tradingeconomics.com
3/25/2014 5:55:59 PM

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Bank of Nigeria Holds Key Rate at 12%
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Central Bank of Nigeria Leaves Rate Unchanged in November
In its 19th of November meeting, the Monetary Policy Committee of the Central Bank of Nigeria decided to leave the benchmark interest rate unchanged at 12 percent. The Committee cited attaining price and exchange rates stability, and warned of possible tightening in 2014. Published on 2013-11-19


Interest Rate | Notes
The interest rate shown on this page refers to the central bank benchmark interest rate. Usually, the central bank benchmark interest rate is the overnight rate at which central banks make loans to the commercial banks under their jurisdiction. Moving the benchmark interest rate, the central bank is able to make an impact on interest rates of commercial banks, inflation level of the country and national currency exchange rate. Reduction of interest rates should bring increase in business activity, a rise in inflation rate and weakening of national currency. In case of increase in interest rates the level of business activity is likely to drop, inflation declines and national currency strengthens.


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Nigerian Inflation Rate Edges Up Slightly in March  
The annual consumer prices in Nigeria accelerated to 7.8 percent in March of 2014, from 7.7 percent recorded in February, as food cost edged up. Compared with the same period a year earlier, the inflation rate slowed down from 8.6 in March of 2013.
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The Monetary Policy Committee decided on March 25th to hold the interest rate at 12 percent, as the Central Bank agreed to continue the existing tight monetary policies. It also decided to increase the cash reserves requirement for private sector deposits by 300 bps to 15 percent.
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In its January 20th and 21st, 2014 meeting, the Monetary Policy Committee of the Central Bank of Nigeria decided to leave the benchmark interest rate unchanged at 12 percent for the fourteenth straight meeting.
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In December of 2013, Nigeria annual inflation rate rose slightly to 8 percent, from 7.9 percent in November. Nigeria's central bank sets 2014 consumer inflation between 6 and 9 percent.
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In November of 2013, Nigeria inflation rate edged up for the first time in four months to 7.9 percent, mainly due to higher food prices. The October reading at 7.8 percent was the lowest in more than five years.
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