By Mariam Abeeb
The Central Bank of Nigeria (CBN) has reduced its Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent, following the conclusion of the 307th meeting of the Monetary Policy Committee (MPC) in Abuja.
The 350-basis-point reduction was announced on Tuesday, September 22, 2026, by CBN Governor, Olayemi Cardoso, at the end of the two-day MPC meeting held from September 21 to 22.
The decision marks a further easing of monetary policy after the MPC had retained the MPR at 26.5 per cent at its previous meetings.
The latest move came amid continued moderation in inflation, with headline inflation declining marginally to 15.39 per cent in August from 15.43 per cent in July.
Alongside the reduction in the benchmark rate, the MPC recalibrated the Standing Facilities Corridor to +50/-300 basis points around the new MPR of 23 per cent.
The Committee, however, retained other major monetary policy parameters. The Cash Reserve Requirement (CRR) remains at 45 per cent for Deposit Money Banks and 16 per cent for Merchant Banks, while the CRR on non-Treasury Single Account public-sector deposits remains at 75 per cent. The Liquidity Ratio was also retained at 30 per cent.
The rate decision comes against a backdrop of easing domestic price pressures and relative stability in the foreign exchange market. August inflation data showed a slowdown in both headline and monthly inflation, although food and core price pressures remain important considerations for monetary authorities.
The CBN had opened the 307th MPC meeting with the Committee expected to assess developments in inflation, foreign exchange, liquidity, economic growth and global financial conditions before determining the appropriate monetary policy direction.
The reduction in the MPR lowers the benchmark cost at which funds are priced within the financial system and could influence lending rates and other borrowing costs, although the actual effect on bank lending will also depend on liquidity conditions and other factors.
The latest decision therefore represents a significant shift in the CBN’s monetary policy stance, coming after a period in which the apex bank maintained relatively tight monetary conditions to address inflation and financial-system pressures.
Sent from my iPhone
Never miss a moment! Get the stories shaping Nigeria, delivered straight to your phone. Follow Peoplesdaily Newspaper on WhatsApp for breaking news, exclusive reports, and the headlines everyone will be talking about, before anyone else.
