CBN Slashes Interest Rate To 23% As Inflation Eases

The Central Bank of Nigeria (CBN) has cut its benchmark interest rate by 350 basis points, reducing the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the conclusion of the 307th meeting of the Monetary Policy Committee (MPC) in Abuja.

Cardoso said the committee resolved to “reset the monetary policy rate to 23 per cent,” marking the first major reduction after the MPC maintained the rate at its previous two meetings.

The latest decision follows a 50-basis-point reduction announced by the MPC in February 2026, as monetary authorities respond to the recent moderation in inflation.

According to the latest Consumer Price Index released by the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate eased marginally to 15.39 per cent in August 2026, compared with 15.43 per cent in July.

The August figure represented the third consecutive monthly decline in headline inflation after three successive monthly increases.

The reduction in the MPR signals a significant shift in the CBN’s monetary policy stance and is expected to have implications for borrowing costs, credit conditions and investment activity across the Nigerian economy.

The MPC’s decision comes as the CBN continues to balance efforts to support economic activity with its mandate of maintaining price stability.