The Central Bank of Nigeria has cut its Monetary Policy Rate from 26.5 per cent to 23 per cent, a 350-basis-point reduction amid easing inflationary pressures.
The decision was taken at the Monetary Policy Committee’s 307th meeting, held on September 21 and 22, 2026.
It is the first change to the benchmark rate since February, when the MPC reduced it by 50 basis points from 27 per cent to 26.5 per cent.
The CBN subsequently held the rate at 26.5 per cent at its May and July meetings as it monitored inflation, exchange-rate conditions and other economic indicators.
READ ALSO: CBN: Nigerians Will Soon Feel Gains Of Economic Stability
The latest cut comes as headline inflation moderates, falling from 15.43 per cent in July to 15.39 per cent in August, according to the National Bureau of Statistics.
The move extends the easing cycle that began in September 2025, when the MPC cut the MPR from 27.5 per cent to 27 per cent after a prolonged period of tight monetary policy.
With Tuesday’s decision, the benchmark rate is now 4.5 percentage points below its 27.5 per cent level before the easing cycle began.
The lower rate could ease borrowing costs and influence money-market conditions, although the effect on bank lending rates will depend on how quickly financial institutions transmit the reduction.
Further details on the MPC’s assessment of inflation, growth, exchange-rate conditions and other policy measures are expected in its full communiqué.