The Central Bank of Nigeria (CBN) has reduced its Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent, describing the move as an operational reset aimed at strengthening monetary policy transmission.
CBN Governor Olayemi Cardoso announced the decision on Tuesday, September 22, in Abuja while presenting the communiqué of the 307th Monetary Policy Committee (MPC) meeting. The committee also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR, while retaining the Cash Reserve Requirement at 45 per cent for deposit money banks, 16 per cent for merchant banks and 75 per cent for non-TSA public sector deposits.
Cardoso said the adjustment was not a change in the underlying monetary policy stance but an operational realignment designed to restore the MPR as the principal signal of monetary policy and support Nigeria’s transition to an inflation-targeting framework. He said the MPC also noted moderating inflation, stronger external reserves, improved external-sector fundamentals and increased investor confidence.
The committee noted that Nigeria’s balance of payments surplus rose to $3.51 billion in the second quarter of 2026 from $2.38 billion in the first quarter, while the current account surplus increased by 67.92 per cent to $7.54 billion.
Cardoso also said headline inflation had declined for three consecutive months despite geopolitical tensions and higher global energy prices.
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