24.02.202613:30:12UTC+00Nigeria Lowers Key Policy Rate to 26.5%

Nigeria’s central bank cut its benchmark interest rate by 50 basis points to 26.50% at its February 2026 meeting, following a hold at 27% in November. This reduction brings borrowing costs to their lowest level since mid‑2024 and is intended to support economic growth amid easing inflationary pressures.

Governor Olayemi Cardoso noted that recent data indicate the ongoing disinflation trend is likely to persist. He cited the lagged impact of earlier monetary tightening, continued stability in the exchange rate, and improved food supply as key factors helping to reduce inflation.

Headline inflation eased marginally to 15.10% in January 2026 from 15.15% in December, marking the tenth consecutive month of decline.

Policymakers left other key monetary policy parameters unchanged. The asymmetric corridor was maintained at +50/-450 basis points around the policy rate. The Cash Reserve Ratio remained at 45% for Deposit Money Banks and 16% for Merchant Banks, while the liquidity ratio was kept at 30%.