Central Bank of Nigeria cuts benchmark interest rate to 23%

Monetary Policy Rate Central Bank of Nigeria interest rate cut inflation monetary policy transmission

The Central Bank of Nigeria (CBN) has reduced its benchmark Monetary Policy Rate (MPR) by 350 basis points, bringing it down from 26.5% to 23%. Announced by Governor Olayemi Cardoso following the 307th Monetary Policy Committee meeting in Abuja, the decision marks a significant shift in monetary policy aimed at improving policy transmission and supporting a transition toward an inflation-targeting framework.

The rate cut follows a period of moderating inflation, with headline inflation falling to 15.39% in August 2026 from 15.43% in July. The CBN also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the new MPR, setting the Standing Lending Facility at 23.5% and the Standing Deposit Facility at 20%.

Despite the rate reduction, the CBN maintained several liquidity measures, retaining the Cash Reserve Requirement (CRR) at 45% for deposit money banks, 16% for merchant banks, and 75% for non-TSA public sector deposits. The move has been described by the bank as an “operational reset” to align official rates with prevailing market conditions and enhance the effectiveness of monetary policy.

Entities

Abuja · Central Bank of Nigeria · Monetary Policy Committee · National Bureau of Statistics · Nigerian Exchange · Olayemi Cardoso

Claims

What the coverage asserts, and how many sources carry each claim.

[DISPUTED] The rate cut represents a 350-basis-point reduction. newsonlineng.com · businessamlive.com · insidebusiness.ng · businesselitesafrica.com · newscentraltv.com · +6 more
[● 10 SOURCES] The Monetary Policy Committee decided to calibrate the standing facility around the MPR to +50/-300 basis points. dmarketforces.com · businessamlive.com · solacebase.com · insidebusiness.ng · www.lindaikejisblog.com · +3 more
[● 16 SOURCES] The decision followed the conclusion of the 307th Monetary Policy Committee meeting on Tuesday, September 22. newsonlineng.com · tgnews.com.ng · dmarketforces.com · www.naijanews.com · businessamlive.com · +8 more
[● 7 SOURCES] Nigeria's headline inflation was 15.39% in August 2026, compared to 15.43% in July. newsonlineng.com · www.naijanews.com · insidebusiness.ng · www.premiumtimesng.com · mmsplusng.com · +1 more
[DISPUTED] The Central Bank of Nigeria reduced the Monetary Policy Rate (MPR) from 26.5% to 23%. newsonlineng.com · tgnews.com.ng · dmarketforces.com · www.naijanews.com · businessamlive.com · +10 more
[● 13 SOURCES] The Cash Reserve Requirement (CRR) was retained at 45 per cent for deposit money banks. dmarketforces.com · solacebase.com · insidebusiness.ng · www.lindaikejisblog.com · businesselitesafrica.com · +6 more
[○ 1 SOURCE] Losses from multiple foreign exchange windows amounted to approximately 3% of Nigeria's GDP.
[● 5 SOURCES] The decision was described as an operational reset to enhance the effectiveness of monetary policy. businessamlive.com · solacebase.com · businesselitesafrica.com · thecitizenng.com · www.lindaikejisblog.com
[● 5 SOURCES] The committee recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR. businessamlive.com · solacebase.com · realnewsmagazine.net · www.arise.tv · insidebusiness.ng