The International Monetary Fund endorsed the Central Bank of Nigeria's decision to cut its benchmark rate to 23%, saying the move reflects progress in taming inflation even though monetary policy remains tight. IMF African Department Director Zeine Ould Zeidane said the September cut should not be seen as a shift to accommodative policy and that policy must keep responding to incoming economic data. At its September meeting, the CBN cut the Monetary Policy Rate by 350 basis points from 26.5% to 23%, surprising many market participants who had expected a hold. Nigeria's headline inflation eased slightly to 15.39% in August 2026 from 15.43% in July, according to the National Bureau of Statistics, marking a third straight month of disinflation. The IMF also warned that further tightening may still be needed in many African economies, so future rate moves will depend on whether inflation keeps moderating.
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- IMF backs CBN rate cut , says monetary stance still tight
The IMF has backed the Central Bank of Nigeria's September rate cut to 23%, calling it a normalization and the right move given significant progress in lowering inflation. However, the IMF said monetary policy remains tight rather than moving to easing. It urged the government to raise revenue from non-oil sources, deepen structural reforms to attract private investment and create jobs, and channel subsidy-reform savings to vulnerable Nigerians. The IMF upgraded Nigeria's 2026 growth forecast to 4.2% from 4.0% last year and projected 4.3% next year, citing higher oil prices and a services-driven economy. Zeidane made these remarks at the IMF-World Bank Annual Meetings 2026 in Thailand.
- CBN rate cut appropriate , monetary stance still tight IMF
The IMF endorsed the Central Bank of Nigeria's decision to adjust its monetary policy stance, saying inflation progress allowed a reduction in the real interest-rate burden, though conditions remain tight and this is not yet monetary easing. The Fund urged the government to mobilise more non-oil revenue, deepen structural reforms to attract private investment and create jobs, and direct savings from subsidy reforms to vulnerable Nigerians. It upgraded Nigeria's 2026 growth forecast to 4.2% from 4.0% last year, with 4.3% projected for next year, citing higher oil prices that boosted foreign exchange receipts and services as the main driver of domestic expansion. The IMF also warned against relying on oil revenue to finance development, noting that exchange-rate reforms and petrol subsidy removal have raised living costs for households.
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- THE CBN RATE RESET – THISDAYLIVE
Columnist Tope Fasoranti argues that the Central Bank of Nigeria's (CBN) 350-basis-point cut in the Monetary Policy Rate, from 26.5% to 23% on September 22, 2026, was a decisive and well-timed call. The standing deposit facility rate fell by 200 basis points to 20%, and the overnight rate closed the week to September 25 at 20.77% according to Cordros Research, so the rest of the cut mainly realigns the official signal with prevailing market rates. Real rates remain higher than a year ago: with headline inflation at 15.39%, the 23% MPR implies a real rate of about 7.6 points, versus about 4.4 points in August 2025. Applying the Taylor rule gives an illustrative range of roughly 17% to 24%, with the new rate toward the cautious end, as core inflation has moderated for three consecutive months from 16.82% in May to 13.29% in August.
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