The Central Bank of Nigeria cut its benchmark interest rate by 350 basis points as the Monetary Policy Committee revised its monetary policy settings.
The decision was reached at the 307th MPC meeting in Abuja on Tuesday, September 22, 2026, with 11 members in attendance, bringing the Monetary Policy Rate (MPR) down from 26.5% to 23%.
The latest move followed the committee’s decision in July to retain the MPR at 26.5%, after previous adjustments to monetary policy as inflation moderated.
Alongside the rate cut, the MPC recalibrated the Standing Facilities Corridor around the new MPR to +50/-300 basis points.
The adjustment placed the Standing Lending Facility at 23.5% and the Standing Deposit Facility at 20%, according to details of the committee’s decision.
The committee also retained existing Cash Reserve Requirement (CRR) levels for Deposit Money Banks, Merchant Banks and non-Treasury Single Account public sector deposits.
Deposit Money Banks continued to maintain a 45% CRR, while Merchant Banks retained a 16% requirement. The CRR for non-TSA public sector deposits remained at 75%.
The CBN’s latest decision came as headline inflation stood at 15.39% in August 2026, according to the National Bureau of Statistics.
The new MPR remained above the August headline inflation rate, following the latest adjustment by the committee.
The CBN’s decision also adjusted the rates within the Standing Facilities Corridor, which guides short-term money market rates around the benchmark policy rate.
The MPC’s decision therefore left the reserve requirements unchanged while lowering the benchmark rate and resetting the corridor around the new MPR.
Ademide Adebayo
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