The Federal Government has welcomed the Central Bank of Nigeria’s decision to reduce the Monetary Policy Rate by 50 basis points to 26.5 per cent, describing it as a sign of growing confidence in the nation’s economic stabilisation.
In a statement on Tuesday, Finance and Coordinating Minister of the Economy Wale Edun said the reduction followed the CBN’s 304th Monetary Policy Committee meeting in Abuja and reflects strong coordination between fiscal and monetary authorities as the country moves from stabilisation to economic consolidation.
Edun noted that the cut provides the government with fiscal space to accelerate investment in infrastructure, energy, agriculture, and social services, while improving access to credit for businesses, supporting private sector investment, and enhancing job creation. He added that it reinforces investor confidence and indicates that President Bola Tinubu’s reform programme is delivering results.
CBN Governor Olayemi Cardoso announced the reduction at the end of the MPC meeting, saying the committee also decided to retain the Standing Facilities Corridor around the MPR at +50/-450 basis points and maintain 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.
READ ALSO: CBN Vows Bold Reforms To Drive $1tn Economy By 2030
This is the second rate cut under the current CBN leadership, following a similar 50-basis-point reduction in September 2025 and a hold in November 2025. Cardoso said the decision was based on a balanced assessment of risks, noting that disinflation is expected to continue, supported by previous monetary tightening, exchange rate stability, and improved food supply.
Edun said the reduction benefits both the government and businesses and supports macroeconomic stabilisation and improved access to credit for Nigerians.