In a statement issued after the apex bank’s 304th Monetary Policy Committee meeting in Abuja, the Honourable Minister of Finance and Coordinating Minister of the Economy, Wale Edun, said the decision reflects effective coordination between fiscal and monetary authorities as Nigeria shifts from economic stabilisation toward consolidation.

According to Edun, the rate cut creates additional fiscal space for the government to scale up investments in critical sectors such as infrastructure, energy, agriculture and social services. He noted that businesses stand to benefit through improved access to credit, stronger private sector investment and enhanced job creation across the real economy.

The minister further stated that the development reinforces investor confidence and signals that the reform agenda of Bola Tinubu is yielding results. He reiterated the administration’s commitment to disciplined fiscal management, structural reforms and sustained collaboration with the Central Bank to ensure economic growth and stability.

The MPC session was chaired by CBN Governor Olayemi Cardoso, who confirmed the 50-basis-point reduction. The Committee also resolved to retain the Standing Facilities Corridor at +50/-450 basis points around the MPR, maintain the Cash Reserve Requirement for Deposit Money Banks at 45 per cent, Merchant Banks at 16 per cent, and 75 per cent for non-TSA public sector deposits.

This marks the second rate cut under Cardoso’s leadership, following a similar adjustment in September 2025 and a hold in November 2025. The governor explained that the decision was based on a balanced assessment of economic risks, citing continued disinflation, exchange rate stability and improved food supply as key supporting factors.

Edun emphasised that beyond benefiting government and businesses, the policy shift supports broader macroeconomic stability and enhances credit access for Nigerians.