The Central Bank of Nigeria (CBN) has lowered the country’s benchmark interest rate to 27.00 per cent, marking the first reduction in 2025.
Governor of the apex bank, Mr. Olayemi Cardoso, announced the decision on Tuesday during a press briefing held after the 302nd meeting of the Monetary Policy Committee (MPC) in Abuja.
According to him, the committee voted to reduce the Monetary Policy Rate (MPR) by 50 basis points, bringing it down from 27.50 per cent to 27.00 per cent. The move, he explained, reflects the committee’s confidence in Nigeria’s recent trend of consistent disinflation.
“The Committee decided as follows: to reduce the monetary policy rate by 50 basis points to 27 per cent,” Cardoso stated.
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The reduction follows three consecutive pauses in interest rate adjustments earlier in the year, breaking what had been a cautious approach by the MPC in light of global and domestic economic pressures.
Observers note that the latest policy shift contrasts sharply with developments in 2024, when the apex bank implemented six consecutive hikes in an aggressive effort to tame inflation and stabilise the naira.
Analysts say the modest cut could help ease borrowing costs for businesses and households, while also stimulating investment and economic growth. However, the CBN emphasised that it remains committed to closely monitoring inflationary trends to ensure that recent gains in price stability are sustained.
The decision is expected to shape lending rates across the banking sector and signal a more accommodative monetary stance moving forward.
