FX.co ★ Nigeria Cuts Key Policy Rate for 1st Time since 2020

The Central Bank of Nigeria reduced its benchmark interest rate by 50 basis points to 27% on September 23, 2025. This marks the first rate cut since September 2020, following three consecutive meetings where rates remained unchanged. The decision to lower the rate was influenced by decreasing inflation and the recent strengthening of the naira, aiming to foster economic growth. In August 2025, Nigeria's annual inflation rate decreased for the fifth consecutive month to 20.12%, the lowest since July 2022.