The federal government has applauded the decision of the Central Bank of Nigeria (CBN) to reduce the Monetary Policy Rate (MPR) by 50 basis points to 26.5 per cent, describing the move as a strong indication that Nigeria’s economic stabilisation efforts are yielding results.
In a statement issued on Tuesday, the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the rate cut followed deliberations at the apex bank’s 304th Monetary Policy Committee (MPC) meeting in Abuja.
Edun noted that the decision reflects “strong coordination between fiscal and monetary authorities as the country transitions from stabilisation to economic consolidation.”
According to the minister, the reduction in the benchmark interest rate provides the government with greater fiscal flexibility to accelerate investments in critical sectors such as infrastructure, energy, agriculture and social services.
“For businesses, it improves access to credit, supports private sector investment, and strengthens job creation in the real economy,” Edun stated.
He added that the development reinforces investor confidence and signals that the reform programme of President Bola Ahmed Tinubu is producing tangible outcomes.
The minister reaffirmed the administration’s commitment to disciplined fiscal management, structural reforms and sustained collaboration with the CBN to drive growth, maintain stability and improve living standards.
The MPC, chaired by CBN Governor Olayemi Cardoso, announced the rate reduction at the conclusion of its 304th meeting.
Cardoso said the committee decided to lower the MPR by 50 basis points to 26.5 per cent after a balanced assessment of economic risks and inflation trends.
In addition to the rate cut, the MPC resolved to retain the Standing Facilities Corridor at +50/-450 basis points around the MPR, Maintain the Cash Reserve Requirement at 45 per cent for Deposit Money Banks, 16 per cent for Merchant Banks, and 75 per cent for non-Treasury Single Account (TSA) public sector deposits.
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Cardoso explained that the decision was guided by ongoing disinflationary trends, supported by the lagged effects of earlier monetary tightening, relative exchange rate stability and improvements in food supply.
The latest move marks the second rate cut under Cardoso’s leadership, following a similar 50-basis-point reduction in September 2025, after which rates were held steady in November 2025.
Economic analysts say the gradual easing suggests that policymakers are increasingly confident inflationary pressures are moderating, even as they remain cautious about maintaining macroeconomic stability.
Edun emphasised that beyond benefiting government finances and corporate borrowing, the decision supports broader macroeconomic stabilisation and enhances access to credit for Nigerians — a development he described as critical to sustaining growth momentum in the months ahead.
