By Oluwakemi Kindness
The Central Bank of Nigeria (CBN) has lowered its benchmark interest rate to 23 per cent, signalling a fresh adjustment to its monetary policy framework.
CBN Governor, Olayemi Cardoso, announced the decision on Tuesday after the Monetary Policy Committee (MPC) concluded its 307th meeting in Abuja.
The reduction brings the Monetary Policy Rate (MPR) down from 26.5 per cent and follows two consecutive MPC meetings at which the rate was unchanged.
The latest move comes after the committee cut the rate by 50 basis points in February 2026.
Cardoso said the committee’s decision followed its assessment of global and domestic economic conditions, emerging risks and their implications for monetary policy.
Beyond the rate cut, the MPC adjusted the standing facility corridor to +50 and -300 basis points around the MPR.
The committee, however, retained the Cash Reserve Requirement at 45 per cent for deposit money banks, 16 per cent for merchant banks and 75 per cent for non-TSA public sector deposits.
Cardoso said the changes are intended to improve how monetary policy decisions transmit through the financial system and make the MPR a clearer signal for the market.
He described the adjustment as an operational realignment rather than a change in the underlying monetary policy stance.
According to him, the recalibration will also support the CBN’s transition towards an inflation-targeting framework without undermining the ongoing disinflation process.
The governor said the MPC also considered the CBN’s efforts to strengthen its monetary policy implementation framework and improve transparency in money market operations.
The committee, he added, believes the new configuration better aligns the policy framework with prevailing market realities
