The Central Bank of Nigeria (CBN) has cut its Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27% to 26.50%, following its 304th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
Governor Olayemi Cardoso announced that the decision was unanimous among all MPC members. He explained that the committee also maintained the liquidity ratio at 30%, adjusted the standing facilities corridor to +50/-450 basis points around the MPR, and retained the Cash Reserve Ratio (CRR) at 45% for commercial banks and 16% for merchant banks. The 75% CRR on non-TSA public sector deposits was also maintained.
Cardoso attributed the rate adjustment to a sustained disinflation trajectory, noting that January 2026 marked the 11th consecutive month of year-on-year headline inflation decline. Key drivers include prior monetary tightening, exchange rate stability, improved food supply, robust capital inflows, and better performance in the external sector through higher exports and remittances.
The Governor also welcomed the recently issued Presidential Executive Order 09, which redirects oil and gas revenues into the federation account, describing it as crucial for improving fiscal revenue.
The MPR serves as Nigeria’s benchmark interest rate, guiding monetary policy to control inflation, maintain macroeconomic stability, and manage liquidity. The last rate cut by the CBN occurred in September 2025, when it lowered the rate to 27%.
