The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has executed a major monetary easing pivot, cutting the benchmark Monetary Policy Rate (MPR) to 23.00% from its previous level of 26.50%.
The 350 basis point reduction represents the most aggressive policy rate cut in recent years, signaling the central bank’s transition from an inflation-fighting stance toward active macroeconomic stimulation.
The decision comes on the back of broad-based disinflation—with August headline inflation moderating to 15.39% and food inflation dropping to 19.57%—supported by a stable naira (1,330/$) and gross external reserves exceeding $55.2 billion as at September 18, 2026, the highest in 18 years.
“The Committee noted the disinflation despite the Middle East conflict, members observed that the reason was due to the earlier policy tightening, FX stability and improved inflation expectations,” CBN Governor Olayemi Cardoso said.
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