The Central Bank of Nigeria (CBN) has attributed the gradual decline in inflation and the reduction in interest rates to the economic reforms introduced by President Bola Tinubu’s administration.
The apex bank said the reforms are beginning to produce positive results, pointing to easing inflationary pressures and improving monetary conditions as signs of progress in the Nigerian economy.
CBN Governor, Olayemi Cardoso, had earlier announced a reduction in the Monetary Policy Rate (MPR) from 26.5 per cent to 23 per cent at the Monetary Policy Committee’s September meeting, representing a 3.5 percentage-point reduction.
According to reports by The Punch and Channels Television, the decision followed a slowdown in inflation, improved foreign exchange conditions and stronger economic growth. Nigeria’s headline inflation reportedly dropped to 15.39 per cent in August 2026 from 15.43 per cent in July.
The CBN also maintained that previous monetary tightening measures, exchange rate stability and improved inflation expectations have contributed to easing price pressures.
However, the development has raised expectations among businesses and consumers for cheaper loans, improved access to credit and reduced borrowing costs.
Despite these improvements, the apex bank faces the challenge of ensuring that the benefits of its reforms translate into meaningful relief for ordinary Nigerians.
