The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, bringing it down from 27 percent to 26.50 per cent.
The decision was made during the bank’s 304th Monetary Policy Committee (MPC) meeting held in Abuja on Tuesday.
CBN Governor Olayemi Cardoso said the move was unanimously agreed upon by all MPC members.
The committee also maintained the liquidity ratio at 30 per cent and adjusted the standing facilities corridor to +50 to -450 basis points around the MPR.
Cash Reserve Ratios (CRR) remained unchanged, with commercial banks at 45 per cent, merchant banks at 16 percent, and non-TSA public sector deposits at 75 per cent.
“The committee’s decision reflected a careful evaluation of economic risks and a recognition of the continuing disinflation trend,” Cardoso stated.
He noted that 11 consecutive months of declining headline inflation in January 2026 were supported by prior monetary tightening, stable foreign exchange rates, and improved food supply, particularly staples.
The governor further highlighted strong performance in Nigeria’s external sector, citing higher export earnings, remittance inflows, and the positive impact of Presidential Executive Order 09, which channels oil and gas revenues into the federation account.
According to Cardoso, these factors have reinforced investor confidence and contributed to macroeconomic stability.
The MPR serves as the benchmark rate guiding lending and borrowing in the economy and is a key tool for managing inflation, liquidity, and overall macroeconomic stability.
Last November, the MPC retained the rate at 27 per cent, while the last cut occurred in September 2025.
Analysts said the reduction might ease borrowing costs for businesses and households while signaling confidence in the nation’s improving inflationary environment.
