Bank cuts rates unexpectedly: At its meeting on 9 October, the Bangko Sentral ng Pilipinas (BSP) decided to reduce the...
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 2025 to 2024.
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 |
Central Bank of Nigeria cuts rates in September
September reduction is first in five years: At its meeting on 23 September, the Central Bank of Nigeria decided to reduce the monetary policy rate by 50 basis points to 27.00%, a smaller cut than markets expected. The cut was the first since the pandemic in 2020.
Slowing inflation and stronger currency drive cautious cut: The key domestic factors influencing the Central Bank's decision included a sustained period of disinflation over the past five months, with projections indicating a continued decline in inflation ahead, plus the need to support economic recovery efforts. Currency appreciation, increased capital inflows and a current account surplus provided some leeway for monetary policy to aid economic recovery.
Monetary policy easing likely to continue: Void of specific forward guidance on future interest rate movements, the release reiterated the Bank’s commitment to maintaining price stability and being proactive with data-driven policy responses. All of our panelists expect further cuts this year as inflation continues to cool, before more rate cuts next year. The Bank will reconvene on 24–25 November.
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 9 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.
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