The Central Bank of Nigeria, CBN, has lowered the country’s Monetary Policy Rate, MPC, by 50 basis points to 26.5 percent at the 304th meeting of the Monetary Policy Committee held on February 23rd and 24th, 2026, with all eleven members in attendance.

CBN Governor, Olayemi Cardoso announced that the rate cut followed a balanced assessment of economic risks and improvements in key macroeconomic indicators.

According to the MPC, the disinflation trend has been supported by the lagged effects of earlier monetary tightening, sustained stability in the foreign exchange market, improved food supply and relatively stable petroleum product prices.

The Committee further reported steady progress in the ongoing recapitalization programme, revealing that twenty out of thirty-three banks that raised additional capital have met the new minimum capital requirement which will further strengthen the financial system and enhance its capacity to support sustainable economic growth.

They further expressed confidence that the downward trend in inflation will continue in the near term, supported by exchange rate stability and improved food supply. However, it cautioned that increased fiscal spending, including election-related expenditures, may pose upside risks.

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