The Central Bank of Nigeria’s Monetary Policy Committee cut the Monetary Policy Rate (MPR) by 50 bp to 26.5 % after assessing that an eleven-month slide in inflation, aided by earlier tightening, exchange-rate stability and better food supply, gives room for “moderate easing” while still anchoring price expectations. The decision extends the rate path that saw a 50 bp reduction in September 2025 followed by a hold in November. The Committee left operating settings unchanged, keeping the standing-facilities corridor at +50/-450 bp around the MPR and maintaining CRRs at 45 % for deposit money banks, 16 % for merchant banks and 75 % for non-TSA public-sector deposits. Headline inflation eased to 15.10 % y/y in January from 15.15 % in December, with food inflation down to 8.89 % and core at 17.72 %; the January PMI of 55.7 points signals ongoing expansion. On the external side, reserves climbed to USD 50.45 bn by 16 February, providing 9.68 months of import cover and supporting FX market stability amid higher export earnings and remittance inflows. Globally, the MPC cited forecasts of stronger 2026 growth and continued disinflation tempered by protectionism and geo-economic fragmentation. It expects domestic disinflation to persist but warned that forthcoming fiscal spending could pose upside risks, pledging an evidence-based approach to keep price stability while safeguarding financial-sector resilience.
Central Bank of Nigeria 2026-02-24
CBN cuts MPR by 50 bp to 26.5 %
Central Bank of Nigeria’s Monetary Policy Committee cut the Monetary Policy Rate by 50 bp to 26.5 %, citing an 11-month decline in inflation, exchange-rate stability and better food supply as scope for “moderate easing”. The standing-facilities corridor and CRR settings were left unchanged, with the MPC pledging a data-dependent approach amid fiscal-driven inflation risks and noting reserves of USD 50.45 bn (9.68 months import cover).