The Central Bank of Nigeria has reduced its benchmark interest rate from 26.5 per cent to 23 per cent as the Monetary Policy Committee moved to ease monetary conditions amid moderating inflation.

CBN Governor, Olayemi Cardoso, announced the decision on Tuesday at the conclusion of the 307th meeting of the MPC in Abuja.

Cardoso said the committee resolved to reset the Monetary Policy Rate to 23 per cent.

The latest decision represents a 350-basis-point reduction from the previous rate of 26.5 per cent.

The rate cut follows two consecutive MPC meetings at which the committee retained the benchmark rate at 26.5 per cent. The CBN had earlier reduced the rate by 50 basis points in February 2026.

The latest move comes as Nigeria’s inflation rate has continued to moderate. According to the most recent Consumer Price Index released by the National Bureau of Statistics, headline inflation declined marginally from 15.43 per cent in July to 15.39 per cent in August.

The August figure represented the third consecutive monthly decline in headline inflation.

The MPC’s decision is expected to have implications for borrowing costs, lending conditions, savings and investment across the Nigerian economy, although the extent to which commercial lending rates respond will depend on broader market conditions.

The CBN’s decision also comes against the backdrop of efforts to maintain price stability while supporting economic activity.

The committee’s September meeting was the 307th MPC meeting since the inception of the committee.