Nigeria’s central bank has delivered a substantial monetary-policy easing, lowering its benchmark rate as foreign-exchange reserves strengthened and inflation continued to moderate.
Key takeaways
- The Central Bank of Nigeria reduced its policy rate by 350 basis points to 23%.
- Governor Olayemi Cardoso announced the decision following the 307th Monetary Policy Committee meeting.
- Foreign reserves have risen to $55 billion, according to the governor.
- The move follows two consecutive MPC holds and a 50-basis-point reduction in February 2026.
- Annual inflation eased from 15.43% in July 2026 to 15.39% in August.
Rate decision and reserves
The Central Bank of Nigeria has brought its interest rate down from 26.5% to 23%. Olayemi Cardoso revealed the decision at a briefing held after the Monetary Policy Committee’s 307th meeting on Tuesday.
Explaining the outcome, Cardoso said the committee had resolved to “reset the monetary policy rate to 23 per cent.” He also said the country’s foreign-exchange reserves had increased to $55 billion.
Policy background and inflation
The latest reduction comes after the MPC left borrowing costs unchanged at its two preceding meetings. It follows an earlier 50-basis-point cut announced in February 2026.
Nigeria’s inflation rate also declined for a second consecutive month during July and August 2026. The rate stood at 15.39% in August, compared with 15.43% in July.
