The monetary policy committee (MPC) of the Central Bank of Nigeria (CBN) has cut the monetary policy rate (MPR) from 27 per cent to 26.5 per cent.
CBN governor, Olayemi Cardoso, made this known at a press conference at the end of the 304th meeting of the Monetary Policy Committee (MPC) in Abuja, on Tuesday.
The rate cut is the lowest since May 2024, when the interest rate stood at 26.25 per cent.
The MPC’s decision follows a drop in Nigeria’s inflation rate to 15.10 per cent in February 2026. It also comes six months after the MPR was cut to 27 per cent in September 2025.
Cardoso said the committee members unanimously voted to reduce the rate by 50 basis points from 27 per cent to 26.5 per cent, while other facilities remained unchanged.
“The cash reserve ratio (CRR) is retained at 45 percent for DMBs; and 16 percent for merchant banks respectively, and 75% for Non-TSA public sector deposits,” the CBN governor said.
“Liquidity ratio (LR) remained unchanged at 30 percent and the asymmetric corridor retained by +50/-450 basis points around the MPR.”
The CBN governor explained that the committee’s decision was premised on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation trajectory would continue.
“The sustained deceleration in year-on-year headline inflation in January 2026 marks the 11th consecutive month of decline.”
The CBN governor further said there were notable improvements in the external sector, with gross external reserves rising to $50.45 billion as of February 16, 2026 — the highest in 13 years.
