The announcement was made by the Nigerian Central Bank Governor Godwin Emefiele on Friday, despite concerns over inflation, the depreciation of the naira and reduced food production caused by the Islamist insurgency in the north.
The private sector cash reserve requirement was also retained at 75 per cent and the ratio at 15 per cent.
(READ MORE: Nigerian central bank retains interest rate at 12%)
While the high levels of Nigerian banks’ liquidity should have resulted in an interest rate hike, the central bank decided to retain rates given the potential negative impact it would have on businesses.
Rates also remained unchanged given the campaign related spending before next year’s election which will increase price pressures.
Additional reporting by Reuters