In a significant shift, the Central Bank of Nigeria’s Monetary Policy Committee has lowered the Monetary Policy Rate to 23 per cent from 26.5 per cent at its 307th meeting. This 350-basis-point reduction marks the largest single cut in years and signals a clear pivot toward supporting economic growth after a prolonged period of tight policy.
Alongside the rate cut, the Committee recalibrated the standing facilities corridor to +50/-300 basis points around the new MPR. The Cash Reserve Requirement remains unchanged 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 timing is deliberate. Headline inflation eased to 15.39 per cent in August 2026, the third consecutive monthly decline, giving the MPC room to ease without abandoning its focus on price stability. Policymakers appear confident that the disinflation trend can continue even as borrowing costs fall.
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