ABUJA, NIGERIA – The Central Bank of Nigeria (CBN) announced on Tuesday, 24 February 2026, a reduction in its Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27 per cent to 26.5 per cent. The decision was disclosed by the Governor of the Central Bank of Nigeria, Olayemi Cardoso, during a press briefing at the conclusion of the 304th Monetary Policy Committee meeting in the federal capital.
Governor Cardoso explained that the Committee’s decision was based on a careful assessment of economic risks and the outlook for inflation, which suggests that price increases are expected to continue slowing due to earlier monetary policies and improved food supplies across the country.
“The Committee decided to reduce monetary policy rates by 50 basis points to 26.5 per cent,” Cardoso said. He also confirmed that the Committee opted to maintain the cash reserve requirements for deposit money banks at 45 per cent, merchant banks at 16 per cent, and non-Treasury Single Account public sector deposits at 75 per cent.
The governor highlighted that the Committee considered the sustained deceleration of Nigeria’s inflation rate year-on-year, marking the eleventh consecutive decline. Eleven members of the Monetary Policy Committee were in attendance during the session.
Economists suggest that the reduction in the MPR could stimulate investment and borrowing, potentially supporting growth in the private sector while balancing the need to maintain price stability.
Okay News reports that this policy adjustment represents a continuation of the Central Bank’s cautious approach to monetary management amid ongoing economic challenges in Nigeria.
