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Central Bank of Nigeria cuts benchmark interest rate to 23%
The Central Bank of Nigeria (CBN) has implemented a significant 350 basis point reduction in its Monetary Policy Rate (MPR), bringing the benchmark from 26.5% down to 23%. This move, described by Governor Olayemi Cardoso as an “operational recalibration” rather than traditional easing, aims to strengthen the transmission of monetary policy and restore the MPR as a primary economic signal.
The decision follows a period of declining inflation, which reached 15.39% in August 2026. Alongside the rate cut, the CBN recalibrated the Standing Facilities Corridor to +50/-300 basis points. However, the Cash Reserve Requirement (CRR) remains high, held at 45% for deposit money banks and 16% for merchant banks.
Despite the substantial policy adjustment, commercial banks have not yet significantly lowered lending rates for businesses and households. Financial institutions are reportedly taking a cautious approach, assessing the impact of the new benchmark on liquidity and profitability before adjusting loan-pricing structures.
Entities
Central Bank of Nigeria · Monetary Policy Committee · NGX · Naira · Nigeria · Olayemi Cardoso
Claims
What the coverage asserts, and how many sources carry each claim.
- [DISPUTED] The MPR reduction of 350 basis points is the largest single cut in the institution's history. afriqueconfidentielle.com · www.fellowpress.com · www.withinnigeria.com
- [● 4 SOURCES] The Cash Reserve Requirement (CRR) for deposit money banks remains at 45%. www.fellowpress.com · tribuneonlineng.com · businessday.ng
- [● 4 SOURCES] Headline inflation in Nigeria fell to 15.39% in August 2026. afriqueconfidentielle.com · www.fellowpress.com · www.thisdaylive.com · www.withinnigeria.com
- [DISPUTED] The Central Bank of Nigeria reduced the Monetary Policy Rate (MPR) from 26.5% to 23%. businessamlive.com · afriqueconfidentielle.com · www.fellowpress.com · www.withinnigeria.com · businessday.ng
- [● 2 SOURCES] Commercial banks have not yet significantly reduced lending rates following the MPR cut. www.fellowpress.com
- [● 3 SOURCES] The Standing Facilities Corridor was recalibrated to +50/-300 basis points. www.fellowpress.com · businessday.ng