Nigeria makes biggest rate cut in nearly 20 years, bank says

Nigeria's central bank cut its key interest rate to 23 percent from 26.5 percent on Tuesday, a move it described as the largest rate cut in nearly two decades.

Central Bank of Nigeria governor Olayemi Cardoso said at a press conference in Abuja that the change was an “operational realignment” and should not be read as a change in policy stance.

Cardoso cited what he called growing resilience in Nigeria's economy, pointing to slower inflation, foreign exchange reserves and stronger investor confidence. Inflation stood at 15.4 percent in August after being above 30 percent throughout 2024.

He also said Nigeria's balance of payments surplus rose to $3.51 billion in the second quarter of 2026 from $2.38 billion in the first quarter.

President Bola Tinubu, who is seeking a second term in January, has scrapped a long-running fuel subsidy, ended support for the naira and pursued tax changes since taking office in 2023. The International Monetary Fund said 63 percent of Nigeria's 235 million people were in poverty by the end of 2025, and more than 27 million Nigerians suffered from food insecurity during the year.