The Central Bank of Nigeria Monetary Policy Committee (MPC) has lowered the Monetary Policy Rate by 50 basis points to 26.5% This key decision came at the end of the 304th MPC meeting held on Tuesday, February 24, 2026.
Full outcomes of 304th MPC
Monetary Policy Rate now stands at 26.5%.
Cash Reserve Ratio is 45% for commercial banks and 16% for merchant banks.
Liquidity Ratio remains at 30%
Standing Facilities Corridor is set at plus 50 basis points and minus 450 basis points around the MPR.
The adjustments aim to guide liquidity and lending conditions across the banking sector.
What This Means
This move is expected to ease some pressure on borrowing costs while supporting broader economic stability in Nigeria. Here’s what each decision means
1. MPR cut by 50 basis points to 26.5%
– MPR is the main interest rate the CBN charges banks when they borrow money from it.
Following the cut, borrowing will become slightly cheaper for banks, businesses and businesses.
2. Standing Facilities Corridor (+50 / -450 basis points)
Banks can still deposit excess money with CBN at 26.5% – 4.5% = 22% and can borrow emergency money from CBN at 26.5% + 0.5% = 27%.
This wide corridor encourages banks to lend more to customers rather than just parking money with the CBN.
CBN is starting to relax its tight money policy a bit because inflation is coming under control with this being the first rate cut in a while.
