CBN Governor Cardoso Cuts MPR to 26.50% in 2026

On Tuesday, Olayemi Cardoso, the Governor of the Central Bank of Nigeria, announced the first Monetary Policy Committee (MPC) decision of 2026, which involved a reduction of the Monetary Policy Rate (MPR) by 50 basis points to 26.50%. This decision was reached unanimously by the MPC members during their 304th meeting.

Despite this adjustment to the benchmark rate, the committee decided to maintain other monetary parameters, including the Cash Reserve Ratio (CRR) at 45% for commercial banks and 75% for merchant banks. The latest rate cut is significant as it marks the first reduction since September 2025, when the MPR was maintained at 27%.

Additionally, data from the National Bureau of Statistics indicated that Nigeria's inflation rate eased to 15.10% in January, down from 15.15% in December. This move is seen as a cautious shift in monetary policy by the apex bank, balancing inflation control with economic growth considerations.