• Nigeria cuts benchmark rate 50 basis points to 26.5%
• Inflation eases to 15.10% in January 2026
• FX reserves rise to $50.45 billion, highest in 13 years

The Central Bank of Nigeria, CBN, cut its benchmark interest rate by 50 basis points to 26.5% from 27%, its Monetary Policy Committee, MPC, said in a communiqué released on Tuesday, Feb. 24.

The bank said the decision followed a balanced assessment of risks to the outlook, with current disinflation expected to continue. It cited the delayed effects of earlier monetary tightening, continued exchange rate stability and improved food supply.

Annual inflation edged down to 15.10% in January 2026 from 15.15% in December 2025, reflecting slower increases in food and core prices. Food inflation fell to 8.89% from 10.84%, supported by improved domestic supply, exchange rate stability and a favourable base effect.

The rate cut comes as macroeconomic conditions improve. Economic growth is projected at 4.68% in 2026. Authorities attribute the expansion to easing inflation, exchange rate stability and ongoing structural reforms.

The naira has strengthened, helped by rising foreign exchange reserves, which stood at $50.45 billion as of Feb. 16, 2026. This is the highest level in 13 years and equivalent to 9.68 months of import cover.

Ingrid Haffiny