The Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, has said the decision of the Central Bank of Nigeria (CBN) to lower the Monetary Policy Rate, MPR, to 26.5 per cent reflects growing confidence in Nigeria’s economic stabilisation efforts.
The apex bank’s Monetary Policy Committee, MPC, at its 304th meeting held in Abuja on Tuesday, reduced the benchmark interest rate from 27 per cent to 26.5 per cent — the first downward adjustment since May 2024.
In a statement issued shortly after the announcement, Edun described the move as a clear indication of improving macroeconomic conditions and effective coordination between fiscal and monetary authorities.
“The decision of the Central Bank to reduce the Monetary Policy Rate by 50 basis points to 26.5 per cent underscores rising confidence in Nigeria’s macroeconomic stabilisation,” the minister said.
He noted that the rate cut signals a transition from economic stabilisation to consolidation, adding that close collaboration between the fiscal and monetary arms of government remains central to sustaining growth.
According to him, the reduction in the benchmark rate will ease government borrowing costs and create fiscal space to fast-track investments in critical sectors, including infrastructure, energy, agriculture and social services.
He further stated that the move would enhance access to credit for businesses, stimulate private sector investment and boost job creation across the real economy.
“Importantly, this decision strengthens investor confidence and demonstrates that the reform agenda of President Bola Tinubu is yielding measurable results,” Edun added.
The minister reaffirmed the administration’s commitment to prudent fiscal management, structural reforms and sustained partnership with the CBN to ensure economic stability and improved living standards for Nigerians.
The MPC’s decision followed a moderation in the nation’s inflation rate, which declined to 15.1 per cent in February 2026, further reinforcing optimism about the country’s economic outlook.