CBN cuts interest rate to 23%, economist hails timely reset

CBN cut the monetary policy rate to 23 percent from 26.5 percent at its 307th MPC meeting on Tuesday, September 22, 2026, citing two consecutive declines in inflation. Economist Dr Muda Yusuf, CEO of the Centre for the Promotion of Private Enterprise, called the move a "timely reset", saying it realigns the policy rate with prevailing macroeconomic and financial-market conditions. He noted the previous MPR of 26.5% was misaligned with inflation of about 15.4% and money-market rates around 20%, weakening the policy’s signalling function. The cut should support growth, investment and economic recovery while preserving price and financial-system stability.

Yusuf said the reduction is especially positive for the real sector, where high financing costs have constrained investment, production, working capital and job creation in manufacturing, agriculture, construction, logistics and other sectors with long investment cycles and tight margins. Lower borrowing costs could improve business cash flows, stimulate investment and strengthen the economy’s productive capacity.

Will you review your business’s financing costs and consider taking advantage of the lower rate to expand operations, or wait to see if further cuts follow?

SOURCE: https://dailypost.ng/2026/09/22/timely-reset-economist-reacts-to-cbn-interest-rate-cut/