The Central Bank of Nigeria (CBN) has reduced its monetary policy rate (MPR) from 27% to 26.5%, marking the lowest level since May 2024. The decision was announced by CBN Governor Olayemi Cardoso during the 304th meeting of the Monetary Policy Committee (MPC) in Abuja.
The rate cut follows a decline in Nigeria’s inflation rate, which fell to 15.1% in February 2026. Governor Cardoso stated that the committee unanimously voted to reduce the MPR by 50 basis points, while leaving other monetary policy tools unchanged.
“The cash reserve ratio (CRR) remains at 45% for deposit money banks, 16% for merchant banks, and 75% for non-TSA public sector deposits,” Cardoso noted. “The liquidity ratio stays at 30%, and the asymmetric corridor is retained at +50/-450 basis points around the MPR.”
He explained that the committee’s decision was based on a careful assessment of risks, highlighting the ongoing disinflation trend. “January 2026 marked the 11th consecutive month of year-on-year headline inflation decline,” he added.
Looking ahead, the governor said the disinflation momentum is expected to continue, supported by exchange rate stability and improved food supply. However, he cautioned that higher fiscal spending, including election-related outlays, could put upward pressure on inflation.
The next MPC meeting is scheduled for May 19–20, 2026.
