The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate from 26.5 per cent to 23 per cent, marking a significant change in the country’s monetary policy direction.
The decision was announced on Tuesday, September 22, 2026, at the end of the Monetary Policy Committee (MPC) meeting chaired by CBN Governor Olayemi Cardoso.
The latest reduction represents a 3.5 percentage-point cut from the previous rate of 26.5 per cent, which the MPC had retained at its July meeting.
The CBN’s Monetary Policy Rate (MPR) serves as a key benchmark for borrowing costs across the Nigerian financial system. Changes to the rate can influence how much banks charge for loans and the returns available on savings and other financial products.
The decision comes after the CBN maintained the rate at 26.5 per cent in July amid concerns about inflation, exchange-rate pressures and other economic risks. At the time, the committee said it would continue to monitor developments before making further adjustments.
The September decision also comes against the backdrop of recent moderation in inflation and changes in economic conditions. However, analysts had expressed differing views ahead of the meeting, with some cautioning that rising crude oil and petrol prices could complicate the inflation outlook.
The latest cut takes the benchmark rate back to 23 per cent, a level last seen in February 2024, according to reports on the decision.
The move is expected to attract close attention from businesses, lenders, investors and consumers, particularly because borrowing costs remain a major concern for households and businesses.
For businesses, a lower benchmark rate could influence the cost of credit, although the extent to which commercial lending rates respond will depend on how banks transmit the CBN’s decision.
The new rate also marks a notable shift from the period of monetary tightening that saw the CBN raise its benchmark rate substantially in an effort to contain inflation.
Further details from the MPC’s communiqué are expected to provide more insight into the reasons behind the rate cut and the committee’s assessment of inflation, economic growth, exchange rates and other risks.
