Most analysts had expected the bank's monetary policy committee to increase interest rates by 25-50 basis points, after hiking rates at its last three meetings.
Headline inflation fell to 10.2 percent year-on-year in June from 12.4 percent in May, approaching the central bank's notional single-digit target, but Nigeria's inflation figures are volatile and liquidity flows remain high.
Central bank Governor Lamido Sanusi said sub-Saharan Africa's second-largest economy grew 6.64 percent in the first quarter of this year, down from 7.36 percent in the same period in 2010. The central bank maintained its forecast for full-year 2011 growth of 7.8 percent.
Sanusi said despite the slowdown in GDP growth and tempering of inflation the committee members at the meeting had voted 10-2 to raise rates. He noted the uncertain global economic climate and Nigeria's structural fiscal deficit as determining factors.
The bank last raised rates in May, by 50 basis points.
"The inflation outlook appears uncertain owing to the expected implementation of the new national minimum wage policy and the imminent deregulation of petroleum products," Sanusi told a press conference in Abuja.
LIQUIDITY
"(The) significant injection of liquidity from (government) in the third quarter, coupled with the impact of AMCON recapitalising banks ... will both add to inflationary pressures," he added.
Nigeria distributed a record 1.3 trillion naira ($8.5 billion) to the three tiers of government in June, more than double the previous month. The government is due to implement a new law more than doubling the national minimum wage.
State bad bank AMCON is helping recapitalise Nigerian banks.
The central bank kept its 200 basis point corridor around the benchmark rate, so its recommended deposit rate is 6.75 percent and its lending rate is 10.75 percent.
Bond yields rose across all maturities this week in anticipation of a rate hike as investors sold debt with the aim of establishing new positions after the MPC meeting.
The naira currency has strengthened in recent weeks, following a lifting of the minimum holding period on government bonds by foreign investors.
Analysts said the interest rate decision would provide further support for the naira, a key objective for Sanusi.
"With core inflation set to rise in second half of the year, and the growth outlook still robust, the central bank has laid down clearly its price stability credentials ... look for the naira to strengthen further on this result," said Razia Khan, Head of Africa Research at Standard Chartered.
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