Central Bank of Nigeria’s Monetary Policy Committee (MPC) lowered its benchmark interest rate by 50 basis points to 26.5%, marking the 2nd such cut under Governor Olayemi Cardoso’s leadership. Announced after the 304th meeting in Abuja, the decision keeps the Standing Facilities Corridor at +50/-450 basis points around the main rate and maintains Cash Reserve Requirements at 45% for deposit money banks, 16% for merchant banks, and 75% for non-TSA public sector deposits.
This follows a similar reduction in September 2025 and a pause in November. The MPC cited falling inflation—headline at 15.10% in January 2026 (down from 15.15% in December), food inflation at 8.89% (from 10.84%), and core at 17.72% (from 18.63%)—plus month-on-month deflation at -2.88%. External reserves hit a 13-year high of $50.45 billion by mid-February, offering 9.68 months of import cover, boosted by exports and remittances.
The committee praised Executive Order 09 for channeling oil and gas funds to the Federation Account, aiding fiscal revenues and reserves. Financial stability holds strong, with 20 of 33 banks meeting new capital rules amid recapitalization. Economic activity expanded, per a January PMI of 55.7.
Forward risks include fiscal spending tied to elections, but disinflation should persist with stable exchange rates and better food supply. The next meeting is May 19-20, 2026.
