CBN Lowers Monetary Policy Rate to 23% in October 2026

The Central Bank of Nigeria (CBN) has cut the Monetary Policy Rate by 350 basis points to 23%, significantly impacting the investment landscape as of October 2026. Treasury bill yields have started to fall, with the final regular auction before October showing a 364-day bill clearing at 15.89%, down from 16.62% in September.

The naira ended September at approximately N1,329.50/$, and external reserves have risen above $54 billion. Investors submitted over N4 trillion in bids for the one-year Treasury bill, indicating strong demand.

The CBN's OMO market also saw significant activity, with N6.40 trillion in bids submitted at the September 29 auction. While fixed income remains attractive, the opportunity to lock in earlier rates is diminishing.

Investors are advised to consider longer-term investments like FGN bonds, which may appreciate in value if yields continue to fall. Additionally, commercial paper from 23 companies targeting N446.1 billion in Q3 2026 offers potentially better yields but comes with higher risk.