Nigeria falls to third in Africa rate rankings after CBN cuts MPR by 350 bps
The Central Bank of Nigeria reduced its Monetary Policy Rate from 26.50% to 23.00% at its September 21-22, 2026 meeting, a 350-basis-point cut that is the largest since December 2006. This move drops Nigeria to third place among ten African countries with the highest policy rates, behind Zimbabwe at 30% and Malawi at 24%. The rate cut aims to ease borrowing costs and stimulate economic activity amid easing inflation pressures. For businesses and consumers, lower interest rates could mean cheaper loans for expansion, home purchases, or vehicle financing, while savings returns on fixed deposits may decline. The cut also reflects the CBN's recalibration of its standing facilities corridor to +50/-300 basis points around the MPR, while keeping the cash reserve ratio unchanged at 45% for deposit banks. Other countries in the ranking show mixed moves: Angola, Liberia, and Zimbabwe also cut rates; Gambia, Egypt, Malawi, and Ghana held steady; Ethiopia and Sierra Leone raised theirs. The 16-percentage-point spread between the lowest (Ghana and Gambia at 14%) and highest (Zimbabwe at 30%) rates highlights divergent monetary policies across the region. With borrowing costs set to fall, will you consider taking a loan for business or property, or will you shift savings to higher-yielding alternatives?