CBN's Olayemi Cardoso Sets Benchmark Rate at 23%

The Central Bank of Nigeria (CBN), under the leadership of Governor Olayemi Cardoso, announced a reset of the benchmark interest rate to 23% following a two-day Monetary Policy Committee (MPC) meeting. The Committee also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the Monetary Policy Rate (MPR) and maintained the Cash Reserve Requirement (CRR) at 45% for Deposit Money Banks, 16% for Merchant Banks, and 75% for non-TSA public sector deposits.

The MPC clarified that this reset should not be interpreted as a shift in its tightening stance. The adjustment aims to strengthen monetary policy transmission and restore the MPR's role as the primary signal of the Bank’s policy direction.

The MPC noted a widening gap between the MPR and market rates, which had weakened monetary policy effectiveness. Current inflation trends show a moderation, with headline inflation at 15.39% in August 2026, down from 15.43% in July, and food inflation decreasing to 19.57%.

Real GDP growth also improved to 4.43% in Q2 2026.