The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate by 50 basis points, bringing it down to 27 percent.
The adjustment was announced on Tuesday, September 23, 2025, after the Monetary Policy Committee (MPC) meeting in Abuja, where members reviewed recent economic indicators, including inflationary pressures, exchange rate fluctuations, and growth prospects.
The CBN stated that the decision was aimed at balancing the need to curb inflation while ensuring credit flows to the real sector of the economy.
It added that the moderation in the rate is expected to ease borrowing costs for businesses and stimulate investment, while still keeping inflationary risks in check.
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Financial analysts have described the cut as modest, noting that at 27 percent, borrowing costs remain high compared to other emerging economies.
They also stressed that sustained improvements in fiscal discipline, foreign exchange management, and domestic production are critical to achieving the full benefits of monetary easing.
The new interest rate takes immediate effect.