The Central Bank of Nigeria has said cutting the Monetary Policy Rate from 26.5 per cent to 23 per cent will stimulate productive activities in Nigeria’s economy.
He also said the rate cut will rein in on inflation.
He also said the rate cut will rein in on inflation.
The Director, Stakeholder Engagement and Institutional Relations Department of the CBN, Mrs Hakama Sidi-Ali, said this on Tuesday at the CBN Special Day during the 21st Abuja International Trade Fair.
“The Bank recently reset the Monetary Policy Rate from 26.5 per cent to 23 per cent and recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR, to support productive activities without losing focus on bringing inflation down to single digit from its current position of 15.39 per cent,” Sidi-Ali said.
The 350-basis-point reduction signalled a shift towards monetary easing after an extended period of tight policy aimed at containing inflation and stabilising the foreign exchange market.
Sidi-Ali said the CBN, working with fiscal authorities, had implemented reforms aimed at strengthening macroeconomic stability, restoring investor confidence and supporting sustainable growth.
According to her, businesses are better positioned to plan, invest and expand when inflation moderates, exchange rates are relatively stable and the financial system remains sound.
She said, “Resilient trade thrives in an environment of macroeconomic stability. Businesses plan and invest with greater confidence when inflation is moderated, exchange rates are relatively stable, and the financial system is sound.”
The CBN director also urged financial institutions to increase financing to productive sectors, while businesses should embrace innovation, strengthen governance and seek new markets.
“Financial institutions must continue to support productive sectors of the economy. Businesses must embrace innovation, improve governance, and explore new markets,” she added.
The CBN also disclosed that Nigeria’s gross external reserves exceeded $55bn as of September 18, 2026, which it described as the highest level in 18 years.
