The Monetary Policy Committee of the Central Bank of Nigeria has lowered the country’s benchmark interest rate to 26.5 per cent.
The decision was announced on Tuesday by the Governor of the apex bank, Olayemi Cardoso, at the end of the MPC’s 304th meeting held in Abuja.
Cardoso disclosed that members of the committee agreed to trim the Monetary Policy Rate by 50 basis points.
“The Committee decided to reduce the monetary policy rate by 50 basis points to 26.5 per cent,” he stated.
The latest adjustment marks the second rate cut under the current leadership of the central bank. It follows a similar 50-basis-point reduction carried out in September 2025, after which the committee maintained a hold at its November 2025 meeting.
By lowering the rate by 50 basis points, the Central Bank hopes to make borrowing slightly cheaper for Nigerians while still keeping a firm grip on the economy.
The committee explained that this choice was made because it believes the plan to bring down the high cost of living is finally working. The MPC noted that the effects of previous strict policies are now being felt, and the naira is showing better stability in the exchange market.
“The Committee’s decision was based on a balanced evaluation of risks to the outlook, which suggests that the ongoing disinflation path will continue,” the CBN governor stated.
While the main interest rate was reduced, the Central Bank decided to keep other safety measures the same to ensure the banking system remains solid. The Cash Reserve Requirement (CRR)—which is the amount of money banks must keep with the Central Bank—was held at 45 percent for regular commercial banks and 16 percent for merchant banks.
The committee also adjusted the “Standing Facility Corridor,” which is the range of interest rates at which banks can borrow from or lend to the Central Bank. This range has now been set at +50 to -450 basis points around the new 26.5 percent rate.
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