The Central Bank of Nigeria (CBN) has slashed the Monetary Policy Rate (MPR) by 50 basis points, bringing it down to 26.5 percent, reflecting sustained improvements in inflation and macroeconomic stability. The decision comes after the 304th meeting of the Monetary Policy Committee (MPC), held on February 23 and 24, 2026, which saw full attendance from all eleven committee members.
The MPC maintained the asymmetric corridor around the MPR at +50/-450 basis points and kept the Cash Reserve Requirement (CRR) unchanged, at 45 percent for Deposit Money Banks, 16 percent for Merchant Banks, and 75 percent for non-TSA public sector deposits.
Brandspur Banking News Desk reports that the rate cut follows eleven consecutive months of declining headline inflation, which eased to 15.10 percent in January 2026 from 15.15 percent in December 2025. Food inflation dropped sharply to 8.89 percent from 10.84 percent, while core inflation moderated to 17.72 percent from 18.63 percent. Month-on-month, headline inflation recorded -2.88 percent, signalling continued easing of price pressures.
The MPC attributed the disinflation trend to the delayed impact of prior monetary tightening, stable exchange rates, improved food supply, and relative stability in petroleum prices. Nigeria’s external reserves also strengthened, reaching $50.45 billion as of February 16, 2026, the highest level in thirteen years, providing nearly 9.7 months of import cover for goods and services.
Committee members welcomed the Presidential Executive Order directing oil and gas revenues into the Federation Account, citing its potential to enhance fiscal revenues and bolster reserve accretion. The banking sector remains resilient, with ongoing recapitalisation seeing 20 out of 33 banks meeting the new minimum capital requirements.
Economic activity indicators were positive, with the Purchasing Managers’ Index (PMI) standing at 55.7 points in January 2026, signalling continued expansion in output. The MPC forecast that the disinflation trajectory is expected to persist in the near term, supported by exchange rate stability and improved food supply, though higher fiscal spending, particularly election-related outlays, may introduce upside inflationary risks.
The MPC reiterated its commitment to evidence-based policies prioritising price stability and financial system resilience. The next Monetary Policy Committee meeting is scheduled for May 19 and 20, 2026.
