LAGOS, Sept 22 – The Central Bank of Nigeria (CBN) has delivered its largest interest-rate cut in almost two decades, reducing its benchmark Monetary Policy Rate to 23% from 26.5% as underlying inflation continues to ease.
The decision was taken at the conclusion of the 307th meeting of the Monetary Policy Committee (MPC) in Abuja on Tuesday, representing a 350-basis-point reduction in the central bank’s benchmark rate. The latest move is the largest reduction in available data dating back to 2007.
The cut marks a significant shift in Nigeria’s monetary policy stance following an extended period of elevated interest rates aimed at containing inflation and stabilising monetary conditions.
The CBN had previously reduced the MPR by 50 basis points in September 2025, taking it to 27%, before subsequently adjusting the rate to 26.5%.
The latest decision comes as inflationary pressures have moderated, creating greater room for the MPC to ease monetary conditions while continuing to monitor price stability.
The CBN has been operating an inflation-targeting framework under Governor Olayemi Cardoso, with monetary policy focused on restoring price stability while supporting broader economic activity.
At 23%, the MPR returns to a level last associated with Nigeria’s monetary policy in early 2024, before the central bank embarked on a series of aggressive rate increases in response to inflationary pressures.
The scale of Tuesday’s reduction places the CBN among the more aggressive easing moves in its recent policy cycle and could have implications for borrowing costs, credit conditions and investment activity across the Nigerian economy.
