Central Bank of Nigeria Cuts Monetary Policy Rate to 23%
The Central Bank of Nigeria (CBN) reduced its Monetary Policy Rate (MPR) by 350 basis points from 26.5 percent to 23 percent, marking a significant change in the country's monetary policy for the year. This reduction does not guarantee a proportional decrease in borrowing costs for businesses and households.
Prior to this decision, the average maximum lending rate in the banking sector had already decreased to 29.19 percent in August from 33.16 percent in July. This August rate was the lowest recorded in 2026, following a peak of 35.17 percent in February.
The effectiveness of the MPR cut will depend on its transmission into bank lending rates and private-sector credit. In August, private-sector credit rose to N84.55 trillion, an increase of N1.13 trillion from July, although it remained N10.06 trillion below the February peak of N94.61 trillion.
Plus234Feed summary based on reporting from The Will. Read the original report below.
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