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Food inflation slowed sharply in August 2026, offering relief to households, but international agencies warn that conflict and high input costs still leave millions of Nigerians acutely food insecure.

The Central Bank of Nigeria lowered its benchmark interest rate by 350 basis points on September 22, 2026, the steepest cut on record, as inflation eased for a third straight month and reserves strengthened.

The Central Bank of Nigeria is mopping up excess cash to keep money-market conditions tight, supporting the naira and inflation but keeping borrowing costs elevated.

Fitch Ratings has revised Nigeria's credit outlook to Positive from Stable, citing sustained reforms, disinflation and improved foreign reserves of $54.9 billion.

The agency affirmed Nigeria's sovereign rating at B but changed the outlook to positive, citing naira flexibility, disinflation and faster-than-expected reserve accumulation.

Lenders led a broad advance after a softer inflation print revived bets on a pause in the tightening cycle.

The slowdown gives policymakers room to hold, but the service sector is still running hot.

Policymakers kept the benchmark unchanged and pushed back on talk of early cuts.

Investors piled into the long end, signalling confidence in the disinflation path.

The 350-basis-point reduction marked a larger step in the easing cycle, though borrowing costs will still depend on liquidity, bank funding and credit risk.