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The Central Bank of Nigeria (CBN) has cut its benchmark interest rate to 23 per cent from 26.5 per cent, following the conclusion of its 307th Monetary Policy Committee (MPC) meeting in Abuja.
CBN Governor Olayemi Cardoso announced the decision on Tuesday, September 22, 2026, marking a significant reduction of 350 basis points in the Monetary Policy Rate (MPR).
The decision comes amid easing inflationary pressures in Nigeria. Headline inflation declined marginally to 15.39 per cent in August 2026 from 15.43 per cent in July, providing the MPC with greater room to adjust monetary policy.
The latest move follows two consecutive MPC meetings at which the benchmark rate was held at 26.5 per cent. The CBN had earlier reduced the rate by 50 basis points in February 2026.
Beyond the MPR reduction, the MPC retained the Cash Reserve Requirement at 45 per cent for deposit money banks, 16 per cent for merchant banks and 75 per cent for non-TSA public-sector deposits. The Standing Facilities Corridor was recalibrated to +50/-300 basis points around the MPR.
The sharp reduction in the benchmark rate could eventually ease borrowing costs for businesses and households if commercial banks adjust their lending rates accordingly. However, the MPR cut does not automatically mean bank lending rates will fall by the same margin, as individual banks also consider funding costs, liquidity and credit risks.
The decision signals an important shift in the CBN’s monetary policy direction as policymakers balance the need to keep inflation under control with efforts to support credit, investment and economic activity.
