The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has slashed the monetary policy rate (MPR) from 27 percent to 26.5 percent.
CBN’s governor, Olayemi Cardoso, made the announcement of the rate adjustment at a press conference on Tuesday during the committee’s 304th meeting in Abuja.
The rate reduction is the lowest since May 2024, when the interest rate stood at 26.25 percent.
The MPR is the baseline interest rate in an economy, other interest rates used within the economy are built on it.
The MPC’s decision follows a drop in Nigeria’s inflation rate to 15.1 percent in February 2026.
It also comes six months after the MPR was cut to 27 percent in September 2025.
Speaking at the news briefing, Cardoso stated that the committee members unanimously voted to reduce the rate by 50 basis points from 27 percent to 26.5 percent, while other facilities remained unchanged.
“The cash reserve ratio (CRR) is retained at 45 percent for DMBs; and 16 percent for merchant banks respectively, and 75% for Non-TSA public sector deposits,” the CBN governor said.
“Liquidity ratio (LR) remained unchanged at 30 percent and the asymmetric corridor retained by +50/-450 basis points around the MPR.
“The committee’s decision was premised on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation trajectory would continue.
“The sustained deceleration in year-on-year headline inflation in January 2026 marks the 11th consecutive month of decline.”
