Central Bank of Nigeria cuts its policy rate to 23%

The Central Bank of Nigeria cut its policy interest rate by 3.5 percentage points, from 26.5% to 23%, with effect from Tuesday 22 September 2026, according to the central-bank data we track.

Central banks use the policy rate to steer inflation and growth: raising it makes borrowing dearer and tends to cool demand, cutting it makes borrowing cheaper and tends to support it.

Interest rates are one of the main drivers of currencies: a higher rate usually makes holding a currency more attractive, a lower one less. The effect is often priced in before the decision. Educational context, not a forecast.