ABUJA, NIGERIA – The Central Bank of Nigeria (CBN) reduced its key lending rate, known as the Monetary Policy Rate (MPR), by 50 basis points from 27 per cent to 26.5 per cent following the 304th Monetary Policy Committee meeting on Tuesday, 24 February 2026.
Governor of the Central Bank, Olayemi Cardoso, said the decision was based on a balanced evaluation of economic risks and the outlook for disinflation. He explained that improvements in food supply and previous monetary policy measures have contributed to a continued slowdown in Nigeria’s inflation rate.
“The Committee decided to reduce monetary policy rates by 50 basis points to 26.5 per cent,” Cardoso stated. He also confirmed that cash reserve requirements for deposit money banks remain at 45 per cent, merchant banks at 16 per cent, and non-Treasury Single Account public sector deposits at 75 per cent.
Cardoso emphasized that the reduction reflects the eleventh consecutive month of decelerating inflation in Nigeria. Eleven members of the Committee attended the meeting.
Analysts suggest that the cut in the interest rate is intended to encourage lending and investment in Nigeria’s financial system while maintaining price stability across the economy.