The Central Bank of Nigeria’s Monetary Policy Committee, MPC, on Tuesday cut the interest rate from 27.50 percent to 27 percent from 27.50 percent.

CBN Governor, Olayemi Cardoso, announced this at a press conference after the two-day 302nd MPC meeting in Abuja.

According to him, the members of the MPC unanimously agreed to the cut due to the country’s inflation decline for the past five months.

MPC also adjusted the Cash Reserve Ratio, CRR, to 45 percent for Deposit Money Banks and 16 percent for Merchant Banks.

It also adjusted the asymmetric corridor at +250/-250 basis points around the MPR.

The committee retained the liquidity ratio, LR, at 30 percent.

DAILY POST reports that this is the first CBN-announced interest rate cut since May 2023, when it was slashed from 18 percent to 17.5 percent.

This comes as industrial stakeholders and manufacturers called for MPR downward easing to bring down the cost of production.

The development comes as inflation moderated in August to 21.12 percent for the fifth consecutive time.

Similarly, the country’s economy grew by 4.23 percent in the second quarter of 2025 when compared to 3.13 percent in the preceding quarter.

While agriculture, services, industries and oil sectors recorded growth, manufacturing, trade, ICT and motor assembly contracted.

Within the African countries, Nigeria’s interest rate and inflation are still among the highest, higher than Ghana and South Africa.

Ghana cut its interest rate by 350 basis points to 21.5 percent while inflation stood at 11.5 percent. South Africa’s interest rate is 7 percent, and August inflation stood at 3.3 percent.