MPC Speaks On Situation In Oil Producing Regions

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN), has given its perspective on the situation in the oil producing regions of the country.

The MPC gave the perspective rising from its 302nd meeting on September 22 and 23 within the week.

First, it commended the Federal Government for what it described as stability in the oil producing regions, submitting that this has impacted positively on the economy.

The committee Federal Government’s efforts at improving security in oil-producing regions has sustained production growth and that that would support external reserves and foreign exchange stability.

The committee made the submissions against reserves standing at $43.05bn as of September 11, 2025, up from $40.51bn at the end of July, providing an import cover of 8.28 months.

The current account balance was also on a surplus of $5.28bn in Q2, compared with $2.85bn in Q1.

The committee, however, warned about excess liquidity in the banking system arising from fiscal releases and said the new Cash Reserve Ratio (CRR) measures were designed to absorb the surplus and strengthen monetary policy transmission.

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According to the CBN governor, the Nigerian banking sector is however sustaining its resilience as 14 banks have already met the new recapitalisation requirements.

He also reports the MPC projecting that disinflation would persist, supported by exchange rate stability, declining PMS prices, and the harvest season.