The Monetary Policy Committee of the Central Bank of Nigeria has reduced the benchmark interest rate from 26.5 per cent to 23 per cent, representing a 350-basis-point adjustment.
![](https://thenigerialawyer.com/wp-content/uploads/2026/09/NBBSPIDEL.png")
![](https://thenigerialawyer.com/wp-content/uploads/2026/05/2026-Summer-IDRI-Masterclass.jpg")
CBN Governor Olayemi Cardoso announced the decision on Tuesday at the conclusion of the committee’s two-day 307th meeting, held from September 21 to 22 in Abuja.
The decision followed two consecutive retentions of the Monetary Policy Rate at 26.5 per cent in May and July 2026. The committee had earlier reduced the rate by 50 basis points from 27 per cent to 26.5 per cent in February.
Announcing the latest decision, Cardoso said the committee resolved to reset the MPR and recalibrate the policy corridor as part of an operational realignment intended to strengthen the transmission of monetary policy measures across the economy.
“The committee decided to reset the MPR and recalibrate the policy corridor as an important operational realignment aimed at strengthening monetary policy transmission and reinforcing the primacy of the monetary policy rate,” the CBN said.
The apex bank explained that the adjustment should not be interpreted merely as a change in the prevailing monetary-policy stance but as an operational reset designed to improve policy effectiveness and support Nigeria’s transition to an inflation-targeting framework.
“It emphasised that the recalibration of the corridor does not constitute a change in the current monetary policy stance, but rather an operational reset to enhance the effectiveness of monetary policy and support the transition to an inflation-targeting framework,” the bank added.
The committee also adjusted the asymmetric Standing Facilities Corridor around the MPR to +50/-300 basis points.
The adjustment effectively places the CBN’s lending facility at 23.5 per cent and its deposit facility at 20 per cent. It is intended to discourage commercial banks from keeping excess funds with the apex bank and encourage greater lending to businesses and other productive sectors of the economy.
The MPC retained the Cash Reserve Ratio for commercial banks at 45 per cent and maintained the ratio for merchant banks at 16 per cent.
It also retained the 75 per cent CRR imposed on non-Treasury Single Account public-sector deposits as part of measures to manage liquidity within the financial system.
The MPR serves as the benchmark around which commercial banks and other financial institutions price loans and other credit facilities. Although a lower benchmark could eventually reduce borrowing costs, lending rates offered to businesses and individual customers are also influenced by liquidity conditions, credit risks and banks’ operating costs.
The decision came amid a gradual moderation in Nigeria’s headline inflation.
Data from the National Bureau of Statistics showed that headline inflation declined to 15.39 per cent in August 2026 from 15.43 per cent in July. It had previously stood at 15.91 per cent in June and 15.93 per cent in May.
The inflation figures indicate three consecutive months of moderation after inflationary pressure increased in April following the escalation of the conflict in the Middle East and the resulting rise in global energy prices.
Despite the recent moderation, renewed increases in petrol and diesel prices across Nigeria could place fresh pressure on transportation expenses, production costs and the prices of goods and services.
The MPC’s decision therefore reflects an attempt to improve access to credit and support economic activity while preserving measures intended to manage liquidity and prevent a resurgence of inflation.
Interested buyers are encouraged to place their orders and enquiries via:
0704 444 4777, 0704 444 4999, 0818 199 9888
Website: www.alexandernigeria.com
