The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points from 27.0 per cent to 26.5 per cent, the bank announced following its Monetary Policy Committee (MPC) meeting on Monday, February 24, 2026.
The decision is part of the bank’s periodic review of key policy rates to guide monetary and credit conditions in the economy.
In a statement issued after the two-day MPC meeting, the CBN said the committee decided to cut the benchmark MPR by 0.50 percentage points.
The bank noted that this adjustment aims to influence borrowing costs and liquidity conditions in the financial system. The new MPR is now 26.5 per cent per annum.
The CBN said the Cash Reserve Ratio (CRR) on private sector deposits was maintained at 45 per cent, while the Liquidity Ratio target was held at 30 per cent.
The bank also retained the Asymmetric Window at 100 basis points, a facility used by the CBN to fine-tune liquidity conditions in the banking system.
The bank’s Monetary Policy Committee meets regularly to assess economic conditions and determine appropriate policy settings.
It reviews indicators such as inflation, foreign exchange conditions, credit flows, and economic growth in making its decisions.
The MPR cut represents the policy stance of the CBN as it balances monetary conditions with economic indicators.
Financial markets and lenders use the MPR as a reference rate for pricing loans and deposits, and adjustments to the MPR can influence lending rates across the banking sector.
