Oluwafunbi Bello 
Central Bank of Nigeria headquarters in Abuja
ABUJA, Nigeria – Nigeria’s Central Bank of Nigeria (CBN) reduces its benchmark interest rate by 50 basis points to 26.50 per cent, signalling a cautious shift toward monetary easing after months of tight policy.
CBN Governor Olayemi Cardoso announces the unanimous decision following the 304th Monetary Policy Committee meeting in Abuja, describing it as a measured response to evolving economic conditions.
The cut marks the first reduction since September last year, when rates fell from 27.50 per cent to 27 per cent before being held steady amid inflation concerns.
Alongside the adjustment, the MPC retains the liquidity ratio at 30 per cent and maintains the Cash Reserve Ratio at 45 per cent for commercial banks and 16 per cent for merchant banks. The standing facilities corridor is revised to +50 and -450 basis points around the policy rate.
The Monetary Policy Rate remains the CBN’s primary tool for managing inflation, controlling liquidity and stabilising the economy. Tuesday’s move suggests policymakers see gradual improvement, even as inflation and currency volatility persist.
Data from the National Bureau of Statistics shows Nigeria’s interest rate dips marginally in January, reinforcing expectations that cautious easing may continue.
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