The Central Bank of Nigeria (CBN) has reduced the country’s benchmark interest rate to 26.5%, marking the second rate cut under its current leadership.

The decision was announced on Tuesday by CBN Governor Olayemi Cardoso at the conclusion of the committee’s 304th Monetary Policy Committee (MPC) meeting held in Abuja. “The Committee decided to reduce the monetary policy rate by 50 basis points to 26.5%,” Cardoso stated.

This follows a similar 50-basis-point reduction in September 2025, with the MPC holding rates steady during its November 2025 meeting. Analysts note that the move aligns with signs of easing inflation in the country, as Nigeria’s headline inflation rate dropped to 15.10% in January 2026.

The rate cut is expected to have significant