The Central Bank of Nigeria (CBN) has lowered its benchmark interest rate to 23% from 26.5%, marking a significant shift in monetary policy following months of tighter credit conditions.
CBN Governor Olayemi Cardoso announced the decision on Tuesday in Abuja at the conclusion of the Monetary Policy Committee’s 307th meeting.
“The Committee decided as follows: reset the monetary policy rate to 23 per cent,” Cardoso stated while briefing journalists.
The policy shift follows two consecutive meetings where rates were held steady, as well as a modest 50-basis-point reduction implemented earlier in February 2026.
The aggressive rate cut comes on the heels of consecutive decreases in Nigeria’s headline inflation figures, signaling a cooling macroeconomic environment.
Data from the National Bureau of Statistics shows that the Consumer Price Index eased marginally to 15.39% in August 2026, down from 15.43% in July.
This minor reduction represents the third consecutive monthly decline in inflation following an earlier period of sustained upward pressure.
Financial analysts note that the lowered benchmark rate could signal an upcoming easing of borrowing costs for commercial banks and businesses across the country.
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