Naira Drops After CBN Rate Cut

The naira depreciated to N1,359/$ on Tuesday following the conclusion of the 304th Monetary Policy Committee (MPC) meeting of the Central Bank of Nigeria (CBN), down from N1,353.5/$ recorded on Monday.

The modest decline is due to investors processing the apex bank’s decision to lower the Monetary Policy Rate (MPR) by 50 basis points, from 27% to 26.5%. This decision also caused mild pressure in the official foreign exchange market.

The MPC retained the Cash Reserve Ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks, maintained the Liquidity Ratio at 30 percent, and fixed the Standing Facilities Corridor at +50/-450 basis points around the MPR.

Headline inflation declined for the eleventh consecutive month, falling to 15.1 percent in January 2026.

Naira Drops After CBN Rate Cut. Credit: Business Day

Nigeria’s external sector is improving, according to CBN Governor Olayemi Cardoso, who also noted that, as of February 16, gross reserves stood at $50.45 billion, the highest level in 13 years.

Cardo said the performance has contributed to greater stability in the foreign exchange market and strengthened investor confidence.

He noted the importance of market sentiment, stating: “Without market confidence, no matter what you do, you will significantly suboptimise.”

Author

Jimisayo Opanuga

Jimisayo Opanuga is a web writer in the Digital Department at News Central TV, where she covers African and international stories. Her reporting focuses on social issues, health, justice, and the environment, alongside general-interest news. She is passionate about telling stories that inform the public and give voice to underreported communities.