In a significant policy shift, Nigeria’s central bank has cut its key lending rate for the first time in five years, lowering it by 50 basis points (bps) to 27% as inflation shows signs of easing. The decision follows three “hold” actions in 2025 and six rate hikes in 2024, signaling a cautious pivot toward stimulating growth. Economists had anticipated a slightly larger 75 bps cut, but the bank emphasized a balanced approach. The decision comes after headline inflation slowed to 20.12% year-on-year in August, marking the fifth consecutive drop after hitting multi-decade highs last year.
In other news, Nigeria’s vice president called for a major overhaul of the global financial system at the United Nations General Assembly, calling for sovereign debt relief and fairer access to trade and financing for developing economies. He argued that debt relief must be seen not as charity but as a pathway to global stability and prosperity.
CNBC Africa
