CBN Lowers Monetary Policy Rate to 23% in September 2026

On September 22, 2026, the Central Bank of Nigeria (CBN) reduced the Monetary Policy Rate (MPR) by 350 basis points, from 26.5% to 23%. This decision is viewed as timely and significant, reflecting a careful calibration in Nigeria's monetary policy framework.

The effective operating rate indicates that with surplus liquidity in the banking system, overnight rates are gravitating towards the new Standing Deposit Facility (SDF) rate of 20%. The previous SDF was at 22%, indicating a modest adjustment in market conditions.

The real interest rate has also shifted, with the MPR of 23% now sitting against a headline inflation of 15.39%, resulting in a real rate of approximately 7.6 percentage points. This contrasts with the MPR of 27.5% in August 2025, which had a real rate of about 4.4 percentage points against inflation of 23.14%.

The CBN described this rate cut as an operational recalibration rather than a change in its underlying stance.