The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has announced a significant reduction in the benchmark interest rate, cutting it to 23 per cent from 26.5 per cent.
CBN Governor, Olayemi Cardoso, disclosed the decision on Tuesday at the conclusion of the committee’s 307th meeting in Abuja. “The Committee decided as follows: reset the monetary policy rate to 23 per cent,” Cardoso stated.
This marks the first major policy shift since the MPC held rates steady at its last two briefings, following a modest 50-basis-point cut in February 2026. Analysts suggest the latest move reflects growing confidence in Nigeria’s economic trajectory, particularly as inflation shows signs of easing.
According to the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate declined marginally to 15.39 per cent in August 2026, down from 15.43 per cent in July. This represents the third consecutive monthly decline after a period of sustained increases, signaling potential stabilization in consumer prices.
The rate cut is expected to stimulate borrowing, investment, and economic activity, while also easing pressure on businesses and households. However, experts caution that the CBN must balance growth objectives with the need to maintain price stability and safeguard the naira.
The MPC’s decision is being closely watched by investors, financial institutions, and the business community, as it could reshape Nigeria’s monetary landscape in the months ahead.
Details shortly…
