CBN Lowers Rates as Economy Grows

The Central Bank of Nigeria (CBN) has cut its main interest rate to 27% from 27.5%, citing positive economic trends and a need to support growth.

The decision, made by the Monetary Policy Committee (MPC) at its meeting on September 22-23, comes as Nigeria’s economy shows signs of recovery and stability.

According to CBN Governor Olayemi Cardoso, the rate cut was driven by five consecutive months of slowing inflation and a steadying exchange rate.

To improve market liquidity, the CBN also reduced the cash reserve requirement for commercial banks to 45% while keeping the rate for merchant banks at 16%.

In a new move, it introduced a 75% cash reserve requirement for public sector funds not held in the Treasury Single Account.

The MPC noted that these policy adjustments were made possible by a stable macroeconomic environment, improved oil production, and increased capital inflow.

GDP Shows Continued Recovery

The announcement follows recent data from the National Bureau of Statistics (NBS) showing that Nigeria’s Gross Domestic Product (GDP) grew by 4.23% in the second quarter of 2025. This marks a solid improvement from the 3.48% growth recorded during the same period last year.

The report highlighted strong performance across key sectors. The industry sector saw robust growth of 7.45%, while agriculture grew by 2.82%, and the services sector expanded by 3.94%.

In nominal terms, the country’s GDP reached ₦100.73 trillion, signalling a continued economic recovery and resilience.