The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the benchmark interest rate to 26.5 per cent, marking the second cut under the current leadership of the apex bank.
The move reflects continued policy recalibration amid easing inflationary pressures and follows earlier efforts to stabilise prices while supporting economic recovery.
Committee members opted to maintain other key parameters, signaling a cautious yet measured approach to liquidity management and banking sector stability.
Governor Olayemi Cardoso announced the decision on Tuesday at the conclusion of the 304th MPC meeting in Abuja, saying, “The Committee decided to reduce the monetary policy rate by 50 basis points to 26.5 per cent.” Eleven members attended the session.
He added, “The Committee also decided to retain the cash reserve requirements for deposit money banks at 45 per cent, for merchant banks at 16 per cent, and 75 per cent for non-TSA public sector deposits. This reflects a balanced assessment of risks and the expectation that disinflation will continue, supported by prior tightening measures and improved food supply.”
The adjustment follows a similar 50-basis-point reduction in September 2025 and a decision to hold rates at the November 2025 meeting.
Nigeria’s headline inflation moderated to 15.10 per cent in January 2026, marking what Governor Cardoso described as “the 11th consecutive decline.”
