The Central Bank of Nigeria has reduced the Monetary Policy Rate (MPR) by 50 basis points to 26.50 percent from 27 percent. The announcement was made by CBN Governor Olayemi Cardoso after the 304th Monetary Policy Committee meeting in Abuja. He said the decision was unanimously supported by all MPC members.

Despite the rate cut, the committee retained the Cash Reserve Ratio at 45 percent for commercial banks and 16 percent for merchant banks. The 75 percent CRR on non-TSA public sector deposits was also left unchanged. The liquidity ratio remains at 30 percent.

Cardoso further explained that the standing facilities corridor was adjusted to +50 and -450 basis points around the MPR. He noted that the move reflects the committee’s confidence in improving economic indicators and inflation trends.

It will be recalled that the apex bank had maintained the rate at 27 percent in November 2025. Recent data from the National Bureau of Statistics showed inflation easing to 15.10 percent in January, signaling gradual economic stability.