The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, bringing it to 26.5 percent, as part of efforts to support sustainable economic growth and strengthen the resilience of the financial system.
Governor Olayemi Cardoso announced the decision on Tuesday, highlighting modest improvements in domestic inflation and broader economic stability.
Year-on-year headline inflation eased to 15.10 percent in January 2026 from 15.15 percent in December 2025.
Food inflation declined significantly to 8.89 percent, while core inflation fell to 17.72 percent, driven by lower costs in information, communication, and other key sectors.
Cardoso said, “The MPC’s decision balances the need to maintain price stability with supporting productive economic activity.
Our focus remains on ensuring that monetary policy promotes growth while safeguarding the banking sector’s resilience.”
Economic indicators also suggest steady growth.
The Purchasing Managers’ Index (PMI) rose to 55.7 points in January, reflecting continued expansion in industrial activity.
Gross external reserves increased to $50.45 billion as of February 16, 2026, providing a 9.68-month import cover—the highest in 13 years.
The governor noted that global economic developments, including increased investment in AI technologies and easing monetary policies, may support growth.
However, challenges remain, including rising protectionism, geoeconomic fragmentation, and ongoing trade disputes.
Domestically, continued exchange rate stability and improved food supply are expected to sustain disinflation trends, though election-related fiscal spending could pose risks.
The CBN’s Monetary Policy Committee (MPC) will hold its next meeting on May 19–20, 2026.
