The Central Bank of Nigeria has cut its benchmark interest rate, lowering the Monetary Policy Rate to 26.50 percent. The decision was made by the Monetary Policy Committee after reviewing current economic conditions, including inflation trends, exchange rate stability and overall market performance.
The reduction marks a shift from the previous rate as the central bank seeks to stimulate economic activity by making borrowing cheaper for businesses and consumers.
Central bank officials said the rate cut is intended to support credit flow in the economy, encourage private sector investment, and help boost growth in key sectors.
They acknowledged the ongoing challenges in controlling inflation and stabilising the naira, but said the committee believes the adjustment strikes an appropriate balance between supporting growth and maintaining price stability.
Economists and market analysts reacted with mixed views. Some welcomed the move, saying lower interest rates could reduce the cost of loans for households and firms, potentially increasing spending and investment.
Others warned that the persistent high inflation environment could offset the benefits of a rate cut, and urged complementary fiscal and economic reforms to achieve sustainable growth.
The central bank’s policy shift is expected to influence lending rates across commercial banks, affecting mortgages, business loans and other credit facilities.
The rate reduction comes as Nigeria continues to navigate macroeconomic headwinds, including external pressures on reserves and the need to attract investment while protecting consumers from rising costs.
