Central Bank of Nigeria cuts interest rate to 23%

The Central Bank of Nigeria (CBN) has reduced its Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent. This 350-basis-point reduction, decided during the September 21–22, 2026, meeting of the Monetary Policy Committee, represents the largest cut in the current easing cycle.

Under the leadership of Governor Olayemi Cardoso, the move follows a period of monetary tightening intended to restore price and financial stability. The CBN also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the new MPR. Cash reserve requirements remain unchanged at 45 per cent for deposit money banks, 16 per cent for merchant banks, and 75 per cent for non-TSA public-sector deposits.

The policy aims to strengthen monetary-policy transmission and restore the MPR’s effectiveness as a signal for financial-market conditions. While the cut could potentially lower borrowing costs for manufacturers, property developers, and small businesses, the actual impact on the real economy depends on how quickly these changes move through the banking system to consumers and businesses.