CBN Cuts Monetary Policy Rate to Boost Economic Growth

The Central Bank of Nigeria (CBN) announced a reduction in the Monetary Policy Rate from 26.5% to 23% to stimulate productive activities and aim for single-digit inflation. Mrs. Hakama Sidi-Ali, Director of Stakeholder Engagement and Institutional Relations at the CBN, made this announcement during the CBN Special Day at the 21st Abuja International Trade Fair.

The 350-basis-point cut reflects a shift towards monetary easing after a period of tight policy aimed at controlling inflation and stabilizing the foreign exchange market. Sidi-Ali emphasized that macroeconomic stability is crucial for businesses to plan and invest confidently.

She urged financial institutions to increase support for productive sectors and encouraged businesses to innovate and explore new markets. Additionally, the CBN reported that Nigeria's gross external reserves surpassed $55 billion as of September 18, 2026, the highest in 18 years, attributed to increased foreign exchange inflows.

The CBN is committed to reforms that enhance price stability and financial system resilience.