The Central Bank of Nigeria (CBN) has officially announced a reduction in the Monetary Policy Rate (MPR) from 26.5% to 23%, a move aimed at stimulating productive economic activities while continuing efforts to reduce inflation to single digits. This announcement was made by Mrs. Hakama Sidi-Ali, the Director of Stakeholder Engagement and Institutional Relations at the CBN, during the CBN Special Day at the 21st Abuja International Trade Fair.

The adjustment of the MPR by 350 basis points marks a significant shift towards monetary easing after a prolonged period of tight monetary policy designed to control inflation and stabilize the foreign exchange market. Sidi-Ali emphasized that the recalibration of the Standing Facilities Corridor to +50/-300 basis points around the MPR is intended to foster an environment conducive to economic growth.

Highlighting the importance of macroeconomic stability, Sidi-Ali stated that businesses are more likely to plan, invest, and expand when inflation is kept low and exchange rates remain stable. She noted, "Resilient trade thrives in an environment of macroeconomic stability. Businesses plan and invest with greater confidence when inflation is moderated, exchange rates are relatively stable, and the financial system is sound."

In addition to the MPR adjustment, the CBN reported that Nigeria's gross external reserves have surpassed $55 billion as of September 18, 2026, marking the highest level in 18 years. This improvement is attributed to increased foreign exchange inflows from remittances, investments, and enhanced participation in the formal financial system. The unification of the foreign exchange market has also contributed to greater stability and investor confidence, reducing market distortions.

Sidi-Ali called on financial institutions to increase their support for productive sectors of the economy. She urged businesses to adopt innovative practices, improve governance, and explore new markets to enhance their competitiveness. The CBN is committed to implementing ongoing reforms that focus on price stability, financial resilience, and sustainable economic growth.

During the event, Emeka Obegolu, President of the Abuja Chamber of Commerce and Industry, urged the CBN to enhance access to affordable financing for Micro, Small, and Medium Enterprises (MSMEs). He highlighted the need for closer collaboration between the CBN, financial institutions, and the private sector to transform economic opportunities into sustainable enterprises and job creation.

Obegolu further emphasized the necessity for increased financing in agriculture, manufacturing, trade, technology, and export-oriented businesses, as high operational costs and limited access to capital remain significant barriers for many enterprises. He proposed targeted financing, credit guarantees, and innovative funding mechanisms as potential solutions to help businesses navigate these challenges effectively.