FG Supports CBN's 26.5% Interest Rate Cut Decision

The Federal Government of Nigeria has welcomed the Central Bank of Nigeria's (CBN) decision to reduce the monetary policy rate by 50 basis points to 26.5%. This decision, announced during the CBN's 304th Monetary Policy Committee meeting in Abuja, is seen as a signal of growing confidence in the stability of the nation's economy.

Wale Edun, the Honourable Minister of Finance and Coordinating Minister of the Economy, emphasized that the rate cut would provide the government with fiscal space to accelerate investments in infrastructure, energy, agriculture, social services, and business, thereby improving access to credit and supporting private sector investment. CBN Governor Olayemi Cardoso noted that the decision reflects strong coordination between fiscal and monetary authorities to stabilize the economy.

This is the second rate cut under the current leadership of the CBN, following a similar reduction in September 2025. The MPC also decided to retain the cash reserve requirement for deposit money banks at 45.00%.