The Central Bank of Nigeria (CBN) has cut its benchmark interest rate from 26.5 per cent to 23 per cent, as the country continues to record a moderation in inflation.
The decision was taken by the Monetary Policy Committee (MPC) at its 307th meeting held in Abuja and announced by CBN Governor, Olayemi Cardoso, on Tuesday.
Cardoso said the committee resolved to “reset the monetary policy rate to 23 per cent.”
The latest reduction comes after the MPC retained the benchmark rate at its previous two meetings.
It also follows a 50-basis-point reduction announced by the committee in February 2026.
The latest rate cut comes against the backdrop of a gradual decline in Nigeria’s inflation rate in recent months.
According to the latest Consumer Price Index released by the National Bureau of Statistics (NBS), headline inflation fell marginally to 15.39 per cent in August 2026, compared with 15.43 per cent recorded in July.
The August figure represents the third consecutive monthly decline in inflation after the rate had risen for three straight months.
The continued moderation in inflation provided the backdrop for the MPC’s latest decision to ease the benchmark interest rate.
The MPR serves as the CBN’s key policy rate and influences borrowing and lending conditions across the Nigerian economy.
