The Central Bank of Nigeria (CBN) has reduced the country’s benchmark Monetary Policy Rate (MPR) from 26.5% to 23%, marking a 350-basis-point cut in its latest monetary policy decision.
CBN Governor Olayemi Cardoso announced the decision on Tuesday, September 22, 2026, following the 307th meeting of the Monetary Policy Committee (MPC) held in Abuja. The reduction represents a significant adjustment to the benchmark rate after a period of tight monetary policy.
The latest move places the CBN’s benchmark rate at 23%, with the decision coming as the monetary authorities assess developments in Nigeria’s domestic economy, financial markets and broader external environment.
Cardoso also highlighted what he described as a major improvement in economic and market stability. According to the governor, the transition from a period of significant volatility to a more stable environment is particularly important because it allows businesses, investors and other economic participants to plan and make projections with greater confidence.
“My proud moment, stability from a situation of great volatility to one where the market is stable. You can plan, you can project, the external position is not 5, 10 years, 15 years, it’s 18 years better than it has been. This is a big deal, the numbers speak for themselves,” Cardoso said.
The CBN has, under Cardoso, continued to emphasise monetary and price stability as central objectives of its policy framework. The bank has also identified inflation targeting as a major component of its monetary-policy reforms.
The reduction in the MPR could have implications across Nigeria’s financial system. The benchmark rate influences the broader cost of money and can affect lending conditions, investment decisions and other market interest rates, although the extent and speed of any pass-through to consumers and businesses will depend on financial-market conditions.
The decision therefore comes at a closely watched point for Nigeria’s economy, with attention likely to focus on how the lower policy rate interacts with inflation, credit conditions, investment activity and foreign-exchange market stability.
For businesses and investors, the CBN’s emphasis on greater stability is significant because predictable monetary and financial conditions can improve the ability of economic participants to make medium- and long-term plans.
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The latest MPR decision is consequently expected to remain an important development for Nigeria’s financial sector and wider economy as stakeholders assess the implications of the new 23% benchmark rate.
