Central Bank Cuts Rates by 3.5%; NMDPRA Unveils New Petroleum Regulations

The Central Bank of Nigeria reduced the benchmark interest rate by 3.5 percentage points, moving the Monetary Policy Rate from 26.5 per cent to 23 per cent. Concurrently, the Nigerian Midstream and Downstream Petroleum Regulatory Authority (NMDPRA) unveiled proposed regulations intended to curb anti-competitive practices in the petroleum midstream and downstream sectors. Separately, Rabiu Kwankwaso stated that a government led by Peter Obi would reintroduce fuel subsidies through a different approach.

The steep reduction in the benchmark interest rate may provide relief to businesses and borrowers but also increases foreign exchange risks. The new NMDPRA regulations target issues like monopoly, market dominance abuse, and collusion within the petroleum industry.