CBN Resets MPR to 23% as MPC Reviews Monetary Policy Framework
The Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has reset the Monetary Policy Rate (MPR) to 23.00 per cent, while retaining the Cash Reserve Requirement (CRR) for banks at existing levels.
The decision was reached at the MPC’s 307th meeting, where the Committee also recalibrated the Standing Facilities Corridor to +50/-300 basis points around the MPR.
The CRR was retained at 45.00 per cent for Deposit Money Banks, 16.00 per cent for Merchant Banks and 75.00 per cent for non-Treasury Single Account (TSA) public-sector deposits.
CBN Governor, Olayemi Cardoso, explained that the decision represents an operational reset rather than a change in the overall monetary policy stance.
He said the adjustment was aimed at strengthening monetary policy transmission, aligning market interest rates with the monetary policy framework and reinforcing the MPR as the primary policy rate.
The MPC noted improvements in several key economic indicators, including stronger external balances, exchange-rate stability, improved inflation expectations and continued economic growth.
According to the Committee, Nigeria recorded a balance of payments surplus of $3.51 billion in the second quarter of 2026, while the current account surplus rose to $7.54 billion.
Real Gross Domestic Product (GDP) grew by 4.43 per cent, while the Purchasing Managers’ Index (PMI) increased to 52.7 in August 2026. External reserves also rose to $55.25 billion, providing approximately 11.3 months of import cover.
The Committee attributed the moderation in inflation to previous monetary policy tightening, sustained exchange-rate stability and improved inflation expectations.
It also welcomed developments including the successful recapitalisation of the banking sector, the National Affordable CNG Transit Programme and the Memorandum of Understanding between the Federal Ministry of Finance and the CBN on fiscal and monetary policy coordination.
Reflecting on the Bank’s reforms over the past three years, Cardoso said the CBN had focused on restoring confidence, strengthening monetary and financial stability, reforming the foreign exchange market and improving policy credibility.
He added that the reforms had also supported efforts to rebuild external reserves, increase diaspora remittances and strengthen the resilience of Nigeria’s banking sector.
Cardoso reaffirmed the CBN’s apolitical position and its readiness to effectively manage money supply during the election period.
The CBN said it would continue to pursue data-driven monetary policy, financial system stability and reforms aimed at supporting a more resilient Nigerian economy.
CBN Resets MPR to 23% as MPC Reviews Monetary Policy Framework