CBN cuts policy rate to 23% as inflation pressure eases

The Central Bank of Nigeria reduced its Monetary Policy Rate by 350 basis points to 23 percent at its September 2026 meeting, accelerating the move away from the peak of the tightening cycle.

The decision followed a period in which the policy rate stood at 26.5 percent through the middle of the year. The committee also recalibrated its standing-facilities corridor, changing the rates at which banks place or obtain overnight funds from the central bank.

Cheaper policy money is not instant cheap credit

A lower MPR can pull down money-market and government-security yields, but lending rates also reflect deposit costs, cash-reserve requirements, operating expenses and the perceived risk of each borrower. Businesses should therefore expect transmission to take time and differ by sector.

The scale of the cut signals greater confidence in the disinflation trend, while leaving policy restrictive in real-economy terms. Future moves will depend on inflation, foreign-exchange stability and whether faster easing risks renewed price or currency pressure.

Sources

Central Bank of Nigeria, September 2026 Monetary Policy Committee decision and money-market indicators; Arise News report on the September MPC outcome (22 September 2026).