The Monetary Policy Committee of the Central Bank of Nigeria cut the CBN interest rate to 23 per cent from 26.5 per cent on Tuesday, 22 September 2026, Olayemi Cardoso, Governor of the Central Bank, announced after the committee’s 307th meeting in Abuja.

The 350 basis point reduction is the first cut after two consecutive holds. The committee had last reduced the rate by 50 basis points in February 2026.

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“The Committee decided as follows: reset the monetary policy rate to 23 per cent,” Olayemi Cardoso said.

Reports of the communique said the standing facilities corridor was set at +50 and -300 basis points around the new rate.

The cash reserve requirement was left at 45 per cent for deposit money banks, 16 per cent for merchant banks and 75 per cent for non-TSA public sector deposits.

The decision came as headline inflation continued to ease. The National Bureau of Statistics put the rate at 15.39 per cent in August, from 15.43 per cent in July. That was the third monthly decline after three successive increases.

Market accounts said the committee judged that earlier tightening, a steadier exchange rate and firmer inflation expectations could support further cooling, and that the large reset was meant to bring the benchmark closer to rates already seen in the market.

Borrowing costs for households and firms are guided by the MPR, though banks also price in risk, liquidity and the still-high cash reserve ratio. The cut lowers the official floor. It does not by itself set the rate on a loan.