The Central Bank of Nigeria (CBN) reduced the Monetary Policy Rate (MPR) from 26.5% to 23% following its September Monetary Policy Committee (MPC) meeting. Governor Olayemi Cardoso confirmed the 350-basis-point cut on September 22, which follows a 50-basis-point reduction made in February. This adjustment is intended to influence borrowing costs throughout the financial system more effectively.

Alongside the MPR cut, the CBN modified the Standing Facilities Corridor to extend from +50 to -300 basis points around the new benchmark rate. Other policy measures remained unchanged: the Cash Reserve Ratio for banks stayed at 45%, while merchant banks retained their 16% requirement. The 75% reserve requirement on non-Treasury public-sector deposits and the 30% Liquidity Ratio were also left unchanged. Cardoso clarified that these operational adjustments did not represent a shift in the CBN’s overall monetary policy direction.

Nigeria’s inflation rate has begun to decline, with the headline figure falling to 15.39% in August compared to 15.43% in July, according to official figures. The CBN attributed this improvement to stronger economic growth, greater exchange-rate stability, and increased foreign reserves, which currently stand at $55.25 billion. The bank will continue monitoring inflation, liquidity conditions, and currency markets to preserve financial stability.