The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reduced the benchmark Monetary Policy Rate (MPR) by 50 basis points to 26.5% from 27%. This marks the second rate cut in recent months and the first in 2026, following a similar 50-basis-point reduction in September 2025.
The decision was announced at the conclusion of the 304th MPC meeting held on February 23–24, 2026, in Abuja. Eleven members attended the meeting, where the committee opted for this modest easing amid sustained disinflation and efforts to support economic growth while maintaining vigilance against potential inflation resurgence.
The cut reflects improving macroeconomic indicators, including headline inflation declining for multiple consecutive months to around 15.1% in January 2026,a two-year low—driven by moderating food prices, relative stability in energy costs, and a stronger naira that has helped curb imported inflation pressures. Foreign exchange reserves have also strengthened, providing additional buffers.
Analysts had anticipated a cautious move toward easing, with many projecting a 50 basis points reduction to signal confidence in disinflation without fully shifting to a broad accommodative cycle. The MPC appears to be testing the waters, as it maintained tight controls on other parameters to avoid rekindling inflationary risks from fiscal liquidity or other sources.
This adjustment is expected to gradually lower borrowing costs for businesses and consumers, potentially stimulating domestic investment, credit growth, and overall economic activity in a context where high rates had previously constrained expansion.
No immediate changes were reported to other key tools such as the Cash Reserve Ratio (CRR), Liquidity Ratio, or the asymmetric corridor, indicating the CBN's continued focus on price and exchange rate stability.
CBN Governor Olayemi Cardoso was scheduled to address the press following the meeting to provide further details on the rationale and outlook. The next MPC meeting is anticipated later in the year.
This development comes as Nigeria navigates ongoing efforts to balance inflation control with growth support amid global uncertainties.
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