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The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate by 50 basis points to 26.5 per cent from 27 per cent. The decision was announced at the bank’s 304th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
CBN Governor Olayemi Cardoso said the committee reached the decision unanimously.
“The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 percent,” Cardoso said.
The MPC retained the liquidity ratio at 30 per cent. The standing facilities corridor was adjusted to +50 and -450 basis points around the Monetary Policy Rate (MPR). The committee also kept the Cash Reserve Ratio (CRR) at 45 per cent for commercial banks and 16 per cent for merchant banks. The 75 per cent CRR on non-Treasury Single Account public sector deposits was maintained.
Cardoso said the decision followed a review of recent economic data, including a continued moderation in headline inflation and relative stability in the foreign exchange market.
“The Committee’s decision was premised on a balanced evaluation of risk to the outlook which suggests that the ongoing disinflation trajectory would continue largely supported by the lad transmission of previous monetary tightening, sustained exchange rate stability and enhanced food supply,” he added.
“In reaching this policy decision, the committee took into account the sustained deceleration in year-on-year headline inflation in January 2026, marking the 11th consecutive month of decline.
“The momentum was further reinforced by relative stability in the prices of petroleum products and improved food supply conditions, especially staples. These outcomes have indicated that prior tightening has continued to anchor expectations,” he added.
According to him, the committee noted improvements in external reserves, export earnings and remittance inflows, as well as recent policy measures affecting government revenues.
“Members also welcomed the newly issued Presidential Executive Order 09 which redirects oil and gas revenues into the federation account.”
The MPR is the benchmark rate used by the CBN to guide lending rates and manage inflation and liquidity in the economy. At its November meeting, the MPC held the rate at 27 per cent.
