Monetary Policy Committee of CBN Cuts Interest Rate to 26.5%, as Monetary Policy Easing Begins

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, bringing it from 27 per cent to 26.5 per cent following its 304th meeting.

The decision signals the beginning of a cautious monetary easing cycle aimed at supporting economic growth while maintaining price and exchange-rate stability.

The Monetary Policy Committee (MPC) at its 304th meeting voted on policy parameters as follows:

• Monetary Policy Rate (MPR): Reduced by 50 basis points from 27% to 26.5%.
• Cash Reserve Ratio (CRR): Retained at 45% for Commercial Banks and retained at 16% for Merchant Banks.… pic.twitter.com/IqkdTS1G4o

— Central Bank of Nigeria (@cenbank) February 24, 2026

The Committee retained other key policy parameters, including:
Cash Reserve Ratio (CRR): Maintained at 45 per cent for commercial banks and 16 per cent for merchant banks
Liquidity Ratio (LR): Held at 30 per cent
Standing Facilities Corridor: Retained at +50 and -450 basis points around the MPR

The MPC said the adjustment reflects a balance between controlling inflationary pressures and improving credit availability to productive sectors of the economy.

Analysts say the rate cut may gradually lower borrowing costs for businesses, though the impact on consumer prices will depend on broader fiscal and supply-side conditions.

The CBN reiterated its commitment to macroeconomic stability, noting that policy decisions will continue to respond to evolving domestic and global financial risks.