CONTENTS
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CBN Keeps MPR Steady At 27%
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Nigeria’s Economy Expands
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Inflation & Policy Insights
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Attacks Worsen Hunger Says UN
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Turning Challenges to Opportunities
MONETARY POLICY & MACROECONOMIC UPDATES
CBN Keeps MPR Steady at 27%
The Central Bank of Nigeria (CBN) retained the Monetary Policy Rate (MPR) at 27.00% during its 303rd Monetary Policy Committee (MPC) meeting. This decision reflects the Bank’s commitment to maintaining price stability while supporting sustainable economic growth.
Key highlights from the MPC meeting:
- Cash Reserve Ratio (CRR): 45% (commercial banks), 16% (merchant banks), 75% (non-TSA public sector deposits)
- Liquidity Ratio (LR): 30%
- Standing Facilities Corridor: +50/-450 basis points around MPR
Reasoning:
Recent inflation data from the National Bureau of Statistics (NBS) shows a slowdown to 16.01% in October 2025, prompting the MPC to maintain a tight monetary stance to curb inflation while stabilising the naira.
Insight:
Keeping the MPR steady ensures controlled lending rates for businesses and households, preserving purchasing power while enabling gradual economic expansion.
$46bn Reserves, Falling Inflation Signal CBN Policy Impact
- Foreign reserves: $46 billion (highest since 2018)
- October inflation: 16.05%, down from 18.02% in September 2025
- Naira performance: strengthened 3.5% to N1,450/$ at the parallel market
CBN Actions & Impact:
- FX reforms and alignment with fiscal policies have stabilised the currency
- Lower lending rates are emerging, promoting investment and business expansion
- Coordinated monetary interventions have attracted global investor confidence
Expert Opinion:
Dr. Baba Musa, DG of WAIFEM, stresses that inclusive policies must ensure that GDP growth translates to jobs, income, and social welfare.
ECONOMIC GROWTH & MARKET INDICATORS
Nigeria’s Economy Expands
The CBN Purchasing Managers’ Index (PMI) reveals ongoing expansion across all sectors:
- Composite PMI: 55.4 points
- Industry Sector: 54.2 points (9 of 17 subsectors growing)
- Services Sector: 55.6 points (11 of 14 subsectors growing)
- Agriculture Sector: 55.7 points (all 5 subsectors growing)
Observations:
- Expansion is broad-based with 25 of 36 subsectors showing positive activity
- The Petroleum & Coal Products subsector showed mild contraction
- Educational Services posted the strongest growth
Takeaway:
The economy is steadily recovering, with industrial activity, services, and agriculture showing resilience.
Exchange Rate & Currency Strength
- Parallel market: N1,450/$
- Official market: N1,475/$ in October 2025
- Start of year: N1,555/$
Analysis:
- The naira’s appreciation reflects coordinated fiscal and monetary measures
- Policies promoting domestic production over imports have improved the trade balance, contributing to a projected 6% GDP trade surplus
- Positive impact on businesses shifting from import dependence to export-led growth
INFLATION & POLICY INSIGHTS
Cooling Inflation: Opportunities for Households & Investors
- Headline inflation: 16.05% (October 2025)
- Core inflation: gradually easing, reflecting lower food and energy price pressures
Policy Impact:
- The CBN’s rate cut (27% MPR) and monetary easing aim to stimulate investment and growth
- FX reforms have strengthened external reserves and improved naira stability
- Diaspora remittances remain a critical source of USD inflow (~$23bn annually)
Expert Advice:
- Gains in inflation moderation should translate into tangible cost-of-living relief
- Coordination with fiscal and structural reforms is essential for inclusive growth
International Perspective
- IMF projects Nigeria GDP growth of 3.9% in 2025, rising to 4.2% in 2026
- Global risks (slowing growth, geopolitical tensions) remain, but Nigeria shows resilience
- Growth driven by improved oil production, services sector recovery, and agriculture
Spotlight:
The recent GDP rebasing highlights digital services, modular refining, and creative industries as high-growth sectors.
SOCIAL & HUMANITARIAN OUTLOOK
Attacks Worsen Hunger Says UN
- Nearly 35 million people projected to face severe food insecurity in 2026
- Northeast Nigeria most affected: Borno, Adamawa, Yobe, Sokoto, Zamfara
- Phase 5 famine-like conditions expected for ~15,000 people in Borno
- WFP warns of potential increased instability if funding gaps persist
Implication:
Economic recovery and monetary gains must be coupled with humanitarian support to prevent social instability.
Policy Measures to Support the Economy
- CBN diversifying FX sources to increase dollar inflows
- Initiatives include:
- New product development for diaspora remittances
- Licensing additional International Money Transfer Operators (IMTOs)
- Willing-buyer-willing-seller FX model
- Timely naira liquidity access for IMTOs
Outcome:
- Gross FX reserves rising
- Stability of the naira reinforced
- Investment climate strengthened for both local and foreign investors
Turning Financial Challenges into Opportunities
As 2025 comes to a close, Nigeria has experienced significant financial shifts. Inflation is moderating, the naira is regaining strength, and foreign reserves have climbed to record levels. These headline numbers signal recovery, but for many, accessing the right financial tools for personal, business, or emergency needs remains a daily challenge.
From small business owners striving to scale, to families navigating education, healthcare, or home projects, the question isn’t just about GDP growth; it’s about how each Nigerian can turn economic improvement into real opportunities. A strong economy is only meaningful when it empowers people to achieve their goals.
This December, Centrum Finance wants to celebrate your journey with us in 2025. Thank you for trusting us as your growth partner, for choosing our loans, savings, and investment products to make your plans a reality. We’re proud to have supported so many stories of growth, resilience, and ambition this year.
New Opportunities for the Year-End & Beyond
Centrum Finance continues to offer practical, life-focused solutions designed to empower action:
- Business Expansion Loans – Scale your business before the new year.
- Personal Loans – Fund education, home projects, or personal milestones.
- Flexible Repayment Plans & Quick Approvals – Designed to match the pace of modern life.
- Minimal Documentation – So you can focus on your goals, not paperwork.
Customer Spotlight
Meet Amaka, a boutique owner in Abuja. With a Centrum Finance business loan, she opened a second branch in just two months, doubling her sales without touching her savings. Her dream of scaling her brand is now a reality.
A loan isn’t just debt; it’s a lever to achieve your goals faster. Your “one step loan” today could be your giant leap tomorrow. Whether it’s a personal milestone, business expansion, or an emergency, Centrum Finance is ready to help you take that step.
As we head into 2026, we invite you to explore new financial possibilities with us. Together, we can turn challenges into opportunities and make next year even more prosperous.
Centrum Finance – Your Growth Partner.
SOURCES: Nariametrics, Businessday, istock images, Shutterstock, Punch newspaper, Reuters, Guardian News, ICIR Nigeria, Premium Times, Leadership News, Vanguard News, Daily Times Nigeria, Linda Ikeji’s Blog.
DISCLAIMER
This publication is produced by Centrum Finance Company Limited solely for the information of users who are expected to make their own investment decisions without undue reliance on any information or opinions contained herein. The opinions contained in the report should not be interpreted as an offer to sell, or a solicitation of any offer to buy any investment. Whilst every care has been taken in preparing this document, no responsibility or liability is accepted by any member of the Company for actions taken because of the information provided in this publication