CBN cuts benchmark rate to 27% as inflation eases

The Central Bank of Nigeria (CBN) has reduced its benchmark interest rate to 27 per cent, marking the first cut in five years.

The decision, announced by CBN Governor Dr. Olayemi Cardoso on Tuesday, follows five straight months of declining inflation and ends a streak of three pauses after a series of hikes in 2024.

At its 302nd meeting held September 22–23 in Abuja, the 12-member Monetary Policy Committee (MPC) voted unanimously to lower the Monetary Policy Rate (MPR) by 50 basis points from 27.5 per cent.

Cardoso explained that the adjustment was driven by confidence in the steady disinflation trend, noting that headline inflation slowed to 20.12 per cent in August 2025 from 21.88 per cent in July.

“The Committee resolved to lower the monetary policy rate to 27 per cent, reflecting our confidence in the steady disinflation trend seen in recent months,” Cardoso told reporters at a post-meeting briefing.