Nigeria Lowers Key Policy Rate to 26.5%

Nigeria’s central bank trimmed its key interest rate by 50 bps to 26.50% during its February 2026 meeting, after keeping it unchanged at 27% in November. The move pushed down borrowing costs to the lowest since June 2024, aiming to support growth amid moderating inflation. Nigeria’s headline inflation rate eased slightly to 15.10% in January 2026 from 15.15% in December, marking the tenth consecutive monthly decline. Meanwhile, policymakers retained key monetary parameters. The asymmetric corridor was kept at +50/-450 basis points around the policy rate, while the Cash Reserve Ratio remained at 45% for Deposit Money Banks and 16% for Merchant Banks. The liquidity ratio was unchanged at 30%.