Central Bank of Nigeria Raises Monetary Policy Rate to 23%

The Central Bank of Nigeria’s Monetary Policy Committee (MPC) reset the Monetary Policy Rate (MPR) to 23 percent during its 307th meeting on September 21 and 22, 2026. This decision is intended to strengthen the effectiveness of monetary policy in guiding Nigeria’s economic direction.

The MPC also recalibrated the Standing Facilities Corridor (+50/-300 basis points) around the MPR, signaling a commitment to enhance monetary policy transmission. The MPC acknowledged challenges in the past, where a divergence between the MPR and market rates weakened the CBN's influence.

Positive macroeconomic indicators, including a decline in headline inflation to 15.39 percent in August 2026 and a surplus in the balance of payments of US$3.51 billion in Q2 2026, provided the necessary conditions for this reset. Nigeria's external reserves reached US$55.25 billion, sufficient to cover over 11 months of imports, and real GDP growth accelerated to 4.43 percent in Q2 2026, supported by both oil and non-oil sectors.