Nigeria Lowers Key Policy Rate to 26.5%

2026-02-24 13:30 By Luisa Carvalho 1 min. read

Nigeria's central bank trimmed its key interest rate by 50 bps to 26.50% during its February 2026 meeting, after keeping it unchanged at 27% in November last year.

The move pushed down borrowing costs to the lowest since mid-2024, aiming to support growth amid moderating inflation.

Governor Olayemi Cardoso said that recent data suggested the ongoing disinflation trajectory would continue.

He added that the lagged transmission of previous monetary tightening, sustained exchange rate stability and enhanced food supply were helping bring down inflation.

Nigeria’s headline inflation rate eased slightly to 15.10% in January 2026 from 15.15% in December, marking the tenth consecutive monthly decline.

Meanwhile, policymakers retained key monetary parameters.

The asymmetric corridor was kept at +50/-450 basis points around the policy rate, while the Cash Reserve Ratio remained at 45% for Deposit Money Banks and 16% for Merchant Banks.

The liquidity ratio was unchanged at 30%.



News Stream
Nigeria Lowers Key Policy Rate to 26.5%
Nigeria's central bank trimmed its key interest rate by 50 bps to 26.50% during its February 2026 meeting, after keeping it unchanged at 27% in November last year. The move pushed down borrowing costs to the lowest since mid-2024, aiming to support growth amid moderating inflation. Governor Olayemi Cardoso said that recent data suggested the ongoing disinflation trajectory would continue. He added that the lagged transmission of previous monetary tightening, sustained exchange rate stability and enhanced food supply were helping bring down inflation. Nigeria’s headline inflation rate eased slightly to 15.10% in January 2026 from 15.15% in December, marking the tenth consecutive monthly decline. Meanwhile, policymakers retained key monetary parameters. The asymmetric corridor was kept at +50/-450 basis points around the policy rate, while the Cash Reserve Ratio remained at 45% for Deposit Money Banks and 16% for Merchant Banks. The liquidity ratio was unchanged at 30%.
2026-02-24
Nigeria Retains Key Policy Rate at 27%
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