Central Bank of Nigeria faces calls to adjust liquidity reserve requirements
Nigeria's central bank lowered its key policy rate to 23 percent, but banking analysts warn that a high cash reserve requirement continues to restrict lending.
FTMQ Business, written by our newsroom0 views
The Monetary Policy Committee of the Central Bank of Nigeria lowered the Monetary Policy Rate from 26.5 percent to 23 percent during its meeting on September 21 and 22, 2026, TheNiche reported. The 350-basis-point rate cut was aimed at reducing borrowing costs across the economy. [1]
Despite the significant drop in the primary rate, the central bank maintained the Cash Reserve Requirement for deposit money banks at 45 percent, according to TheNiche. Financial analysts question whether the rate reduction can successfully unlock cheap credit for businesses while such a large portion of commercial bank deposits remains locked away. [1]
Holding the cash reserve ratio at 45 percent severely limits the ability of commercial lenders to extend fresh loans to small businesses and consumers. Analysts argue that high liquidity restrictions undermine the impact of lowering the main benchmark interest rate. [1]
In short
- The Central Bank of Nigeria reduced its benchmark interest rate from 26.5 percent to 23 percent in September 2026.
- The central bank kept the Cash Reserve Requirement for commercial banks at 45 percent.
- Financial analysts warn that high cash reserve requirements restrict credit availability despite lower interest rates.
Sources
Every paragraph above points to the numbered items it rests on. Read the originals here.
- [1]Beyond 23% MPR, should CBN reconsider 45% CRR to unlock credit?TheNiche, 16d ago (the report this story comes from)
Our newsroom writes these reports with the help of software, from the 1 sources listed and nothing else, and checks them against those sources. Facts can still be wrong or move on; the originals are the record. Spotted a mistake? Write to daniel@monsterkong.com.
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