The Central Bank of Nigeria (CBN) has reduced the Monetary Policy Rate (MPR) by 50 basis points, lowering it from 27.5% in July to 27%.
The decision was reached at the 302nd meeting of the Monetary Policy Committee (MPC), held on September 22–23, 2025, with all 12 members in attendance. The asymmetric corridor around the MPR was retained at +260 and -250 basis points, reflecting the Bank’s cautious stance on market volatility and liquidity management.
Briefing the press after the meeting, CBN Governor Olayemi Cardoso said the rate cut was informed by sustained disinflation over the past five months, projections of further inflation decline through 2025, and the need to sustain economic growth momentum.
In addition, the MPC reduced the cash reserve requirement for commercial banks to 45%, while retaining that of merchant banks at 16%. It also introduced a 75% cash reserve requirement on non-TSA public sector deposits to strengthen liquidity management.
To further enhance monetary policy transmission, the Committee adjusted the standing facilities corridor, while maintaining the liquidity ratio at 30%.
