By Abiola Olawale
The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate to 27%, marking the first cut since the COVID-19 pandemic in 2020.
The decision, announced today by CBN Governor Dr. Olayemi Cardoso, comes after five consecutive months of declining inflation.
It was also gathered that the Monetary Policy Rate (MPR) was lowered by 50 basis points from its previous level of 27.5%, as decided unanimously by the 12-member Monetary Policy Committee (MPC) during its 302nd meeting on September 22-23 in Abuja.
This adjustment ends a streak of three rate pauses following hikes throughout 2024.
Speaking on the development, Cardoso highlighted sustained disinflation as the key trigger for the rate cut, noting that headline inflation eased to 20.12% in August 2025 from 21.88% in July—a drop of 1.76 percentage points.
“The Committee resolved to lower the monetary policy rate to 27 per cent, reflecting our confidence in the steady disinflation trend seen in recent months,” Cardoso stated during a press briefing.
