The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, bringing it down to 26.50 percent from 27 percent, citing sustained progress in curbing inflation and stabilising the economy.
The decision was announced on Tuesday during the bank’s 304th Monetary Policy Committee (MPC) meeting in Abuja, where all members unanimously approved the rate cut.
“The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 percent,” said Olayemi Cardoso, Governor of the CBN.
He noted that other critical monetary measures were retained, including the liquidity ratio at 30 percent, the standing facilities corridor at +50 to -450 basis points around the MPR, and the Cash Reserve Ratio (CRR) at 45 percent for commercial banks and 16 percent for merchant banks.
The 75 percent CRR on non-TSA public sector deposits was also maintained.
Explaining the rationale behind the decision, Cardoso highlighted that headline inflation declined for the 11th consecutive month in January 2026, reflecting the “continued effect of the contractionary monetary policy, stability in the foreign exchange market, robust capital inflows and improvements in the balance of payments.”
“The momentum was further reinforced by relative stability in petroleum prices and improved supply of staple foods. These outcomes indicate that previous tightening measures have continued to anchor expectations,” he added.
The MPC also acknowledged strong performance in Nigeria’s external sector. Cardoso cited higher export earnings and increased remittance inflows as key factors that have strengthened foreign exchange stability and bolstered investor confidence.
He further welcomed the Presidential Executive Order 09, which directs oil and gas revenues into the federation account, describing it as a policy that will “play a crucial role in improving fiscal revenue.”
