The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reset the Monetary Policy Rate (MPR) to 23.00 per cent, described the decision as an operational reset aimed at strengthening monetary policy transmission and reinforcing the primacy of the benchmark rate.
The decision was taken at the Committee’s 307th meeting, where it also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR.
The MPC, however, retained the Cash Reserve Requirement (CRR) at 45.00 per cent for Deposit Money Banks, 16.00 per cent for Merchant Banks and 75.00 per cent for non-TSA public-sector deposits.
CBN Governor, Olayemi Cardoso, said the adjustments were not a shift in the Bank’s policy stance but were designed to better align market rates with the monetary policy framework and improve the effectiveness of monetary policy transmission.
The Committee noted improvements in several key economic indicators, including stronger external balances, exchange-rate stability, improved inflation expectations and sustained economic growth.
According to the MPC, Nigeria’s balance of payments surplus rose to US$3.51 billion in the second quarter of 2026, while the current account surplus increased to US$7.54 billion.
The Committee also noted that real Gross Domestic Product (GDP) grew by 4.43 per cent, while the Purchasing Managers’ Index (PMI) rose to 52.7 in August, indicating continued expansion in economic activity.
External reserves also climbed to US$55.25 billion, equivalent to approximately 11.3 months of import cover, further strengthening the country’s external position.
The MPC attributed the moderation in inflation to the impact of previous monetary policy tightening, sustained exchange-rate stability and improving inflation expectations.
The Committee also welcomed developments in the financial and broader economic sectors, including the successful recapitalisation of the banking sector, the National Affordable CNG Transit Programme and the Memorandum of Understanding between the Federal Ministry of Finance and the CBN on fiscal-monetary policy coordination.
Reflecting on the Bank’s reforms over the past three years, Cardoso said the CBN had focused on restoring confidence in the economy, strengthening monetary and financial stability, reforming the foreign exchange market and improving policy credibility.
He added that the reforms had also sought to rebuild external reserves, boost diaspora remittances and strengthen the resilience of the Nigerian banking system.
The CBN Governor further reaffirmed the Bank’s apolitical position, stressing its readiness to effectively manage money supply during the election period.
The apex bank said it would continue to pursue data-driven monetary policy, financial system stability and reforms aimed at supporting a more resilient Nigerian economy.
