By Jemimah Wellington, JKNewsMedia Correspondent
INTEREST RATES have been reduced by 50 basis points to 26.50 percent from 27 percent after the Monetary Policy Committee of the Central Bank of Nigeria (CBN) voted unanimously at its 304th meeting in Abuja.
JKNewsMedia.com reports that CBN Governor Olayemi Cardoso announced the decision at a news conference on Tuesday, stating, “The committee decided to reduce the monetary policy rate by 50 basis points to 26.50 percent.”
He said all members agreed to adjust policy parameters, while retaining other key measures.
“Cash Reserve Ratio (CRR) retained at 45 percent for Commercial Banks and retained at 16 percent for Merchant Banks,” he said, adding that the 75 percent CRR on non-TSA public sector deposits was maintained.
The Liquidity Ratio remained at 30 percent, and the Standing Facilities Corridor was retained at +50 and -450 basis points around the MPR.
Cardoso also said the committee’s decision followed “a balanced evaluation of risk to the outlook which suggests that the ongoing disinflation trajectory would continue.”
He noted “the sustained deceleration in year-on-year headline inflation in January 2026, marking the 11th consecutive month of decline.”
The CBN helmsman added that the downward trajectory in inflation was driven mainly by “the continued effect of the contractionary monetary policy, stability in the foreign exchange market, robust capital inflows and improvements in the balance of payments.”
The momentum, he said, was reinforced by relative stability in petroleum product prices and improved food supply conditions, especially staples.
The governor stated that gross external reserves rose to $50.45 billion as of February 16, 2026, the highest in 13 years.
“The committee particularly noted the remarkable performance of Nigeria’s external sector, evidenced by robust accretion to foreign exchange reserves, supported by higher export earnings and increased remittance inflows,” he said, adding that this contributed to greater stability in the foreign exchange market and bolstered investor confidence.
JKNewsMedia.com reports Cardoso as saying that members also welcomed the newly issued Presidential Executive Order 09, which redirects oil and gas revenues into the federation account, noting that it would play a crucial role in improving fiscal revenue.
Disclosing that the next meeting is scheduled for May 19 and May 20, 2026, Cardoso warned, however, that increased fiscal releases, including election-related spending, could pose upside risks to the inflation outlook as he noted that the MPC’s decision follows a drop in Nigeria’s inflation rate to 15.1 percent in February 2026.
