CBN's Monetary Policy Committee Decreases Key Interest Rate to 23%

The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has announced a notable adjustment to the nation's benchmark interest rate, reducing it to 23 per cent from its prior standing of 26.5 per cent. This crucial decision was unveiled by CBN Governor, Mr. Olayemi Cardoso, on Tuesday in Abuja, at the close of the committee's 307th meeting.

During the announcement, Governor Cardoso explicitly stated, "The Committee decided as follows: reset the monetary policy rate to 23 per cent." This latest shift by the MPC follows a period where the rate was maintained without change during the two previous committee briefings. It also comes after a 50-basis-point reduction that was implemented in February 2026.

The decision by the MPC to cut rates aligns with recent observations of consecutive declines in Nigeria’s overall inflation figures. According to the most recent Consumer Price Index report issued by the National Bureau of Statistics (NBS), Nigeria’s headline inflation rate experienced a slight easing to 15.39 per cent in August 2026, a marginal drop from the 15.43 per cent recorded in July. This marks the third consecutive month of inflation reduction, coming after an earlier phase of three successive monthly increases.