Central Bank of Nigeria Lowers Monetary Policy Rate to 23%

The Central Bank of Nigeria announced a reduction in the Monetary Policy Rate (MPR) from 26.5 percent to 23 percent, representing a 350-basis-point shift in monetary policy. This decision aims to lower the benchmark cost of money, although its effects on the economy will depend on how quickly the changes are reflected in banks and financial markets.

The Monetary Policy Committee also maintained the Cash Reserve Ratio for deposit money banks at 45 percent and adjusted the standing facilities corridor to +50/-300 basis points around the new MPR. While the average maximum lending rate decreased to 33.16 percent in June 2026 from 34.78 percent in May, it remains higher than the 29.51 percent recorded in June 2025.

The reduction in MPR may create opportunities for lower lending rates, but actual changes will depend on various factors. Additionally, fixed-income investors have seen yields decline, with the 364-day Treasury bill stop rate at 15.89 percent and FGN bond yields dropping to around 15.6–16 percent.