The Central Bank of Nigeria (CBN) has cut its benchmark interest rate from 26.5 per cent to 23 per cent, in a major decision by the Monetary Policy Committee (MPC).
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the conclusion of the committee’s 307th meeting in Abuja.
Cardoso said: “The Committee decided as follows: reset the monetary policy rate to 23 per cent.”
The latest decision comes after the MPC maintained the benchmark rate at its two previous meetings, following a 50-basis-point reduction announced in February 2026.
The rate cut also comes amid recent declines in Nigeria’s inflation rate.
According to the latest Consumer Price Index released by the National Bureau of Statistics, headline inflation eased marginally to 15.39 per cent in August 2026, from 15.43 per cent in July.
The latest figure represents the third consecutive monthly decline in inflation after three successive months of increases.
The MPC’s decision therefore marks a significant shift in the CBN’s monetary policy stance, coming against the backdrop of the recent moderation in inflation.
