The Monetary Policy Committee (MPC) of the Central Bank of Nigeria lowered the interest rate from 27.50% to 27% on Tuesday.
Nigeria's Central Bank Governor, Olayemi Cardoso, announced the news at a press conference following the two-day 302nd Monetary Policy Committee meeting held in Abuja.
According to him, as the country's inflation rate has declined over the past five months, the Monetary Policy Committee members unanimously agreed to cut interest rates.
The Monetary Policy Committee also adjusted the cash reserve ratio (CRR) for deposit-taking banks to 45% and the CRR for commercial banks to 16%.
It also adjusts the asymmetric corridor to +250/-250 basis points around the MPR.
The committee maintains the liquidity ratio (LR) at 30%.
It is reported that this marks the first time the central bank has announced a rate cut since May 2023, when it lowered the interest rate from 18% to 17.5%.
Previously, industrial stakeholders and manufacturers called for lowering the MPR to reduce production costs.
Meanwhile, the inflation rate in August dropped to 21.12% for the fifth consecutive time.
Similarly, the country's economy grew by 4.23% in the second quarter of 2025, compared to a growth rate of 3.13% in the previous quarter.
Agriculture, services, industry, and the oil sector achieved growth, while manufacturing, trade, information and communication technology, and automobile assembly experienced contraction.
Among African countries, Nigeria still ranks highest in interest rates and inflation, surpassing Ghana and South Africa.
Ghana has cut interest rates by 350 basis points to 21.5%, while the inflation rate stands at 11.5%. South Africa's interest rate is 7%, with an inflation rate of 3.3% in August.
