BY NKECHI NAECHE-ESEZOBOR—Nigeria’s apex bank, the Central Bank of Nigeria (CBN) has announced a cut in its Monetary Policy Rate (MPR) from 26.5% to 23%, marking a 350-basis-point reduction.
The decision was arrived at its 307th September 2026 Monetary Policy Committee meeting, held in Abuja.
The MPR had been held at 26.5% at the July meeting.
The central bank narrowed the Standing Facilities Corridor tied to the Monetary Policy Rate, moving it from +50/-450 basis points to +50/-300 basis points, while leaving all other settings untouched.
Members chose not to alter the Cash Reserve Requirement, keeping it at 45 per cent for commercial lenders, 16 per cent for merchant banks, and 75 per cent for public-sector funds outside the Treasury Single Account. The Liquidity Ratio also stayed put at 30.0 per cent.
Chaired by CBN Governor Olayemi Cardoso, the Monetary Policy Committee functions as the bank’s top decision-making body. It is responsible for setting the monetary guidelines and reference rates that shape the trajectory of the financial industry and, by extension, the wider economy.
