The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate by 50 basis points, bringing the Monetary Policy Rate (MPR) down from 27.5% to 27%.
This decision was reached during the 302nd meeting of the Monetary Policy Committee (MPC), held on September 22–23, 2025.
The asymmetric corridor around the MPR was maintained at +260/-250 basis points, reflecting the Bank’s cautious stance on liquidity management amid market volatility.
CBN Governor, Olayemi Cardoso, said the rate cut was influenced by five consecutive months of disinflation, encouraging inflation projections for the rest of the year, and the need to reinforce macroeconomic stability.
Additional policy changes include:
- Cash Reserve Ratio (CRR) for commercial banks cut to 45%
- CRR for merchant banks retained at 16%
The CBN’s move is aimed at easing credit conditions and supporting economic activity while keeping inflation under control.
