CBN slashes rate to 23% from 26.5%; inflation falls, reserves at $55bn

The Central Bank of Nigeria cut its monetary policy rate to 23 percent from 26.5 percent, announced by Governor Olayemi Cardoso after the 307th MPC meeting on Tuesday, September 21, 2026. The rate cut follows two previous policy holds and a 50-basis-point reduction in February 2026. Cardoso also noted that Nigeria's foreign reserves have risen to $55 billion, while inflation eased for two consecutive months, falling to 15.39 percent in August from 15.43 percent in July.

This move reduces borrowing costs for businesses and consumers, potentially stimulating investment and spending amid slightly easing inflation. Lower rates may encourage loans for expansion, home purchases, or vehicle financing, but savers could see reduced returns on deposits and fixed-income investments. The policy shift signals the CBN's confidence in managing price pressures while supporting growth, though analysts warn to watch for any inflation rebound.

If you are considering a loan for business expansion, a mortgage, or other major purchase, now may be a favorable time to secure financing at lower rates. Conversely, if you rely on interest income from savings, explore alternative investments that might yield better returns. Monitor upcoming inflation data and future MPC decisions to gauge whether the rate cut will be sustained or reversed.

SOURCE: https://dailypost.ng/2026/09/22/cbn-cuts-interest-rate-to-23-percent/