Monetary Policy Committee (MPC) of Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) from 26.5 percent to 23 percent.
Gatekeepers News reports that CBN Governor, Olayemi Cardoso, announced the decision on Tuesday after the committee’s 307th meeting in Abuja. The 350-basis-point reduction represents the first major cut in the benchmark rate after the committee maintained its previous position at its last two meetings.
The decision comes amid a continued moderation in Nigeria’s inflation rate. Data from National Bureau of Statistics showed that headline inflation eased to 15.39 percent in August 2026, from 15.43 percent in July.
The reduction in the MPR lowers the benchmark at which the CBN influences borrowing costs across the financial system. It could therefore affect lending rates, investment returns and the cost of credit, although the impact on individual bank loan and deposit rates will depend on how financial institutions respond.
The latest decision also marks a significant change from the CBN’s monetary policy position in 2025, when the MPR was reduced to 27 percent in September from 27.5 percent.
CBN is expected to provide further details on the other decisions reached at the MPC meeting in its full communiqué.
