Abuja, Nigeria – September 21, 2026
DDNewsOnline
The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) is facing a fresh interest-rate dilemma as it begins its September meeting, with easing inflation creating room for a possible rate cut while rising global oil prices threaten to reignite domestic price pressures.
The MPC is meeting on September 21 and 22 with the Monetary Policy Rate (MPR) at 26.5 per cent after keeping it unchanged at its previous meeting in July. The committee must now weigh the continued moderation in inflation against external risks that could complicate the outlook for prices.
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Nigeria’s headline inflation fell for the third consecutive month in August to 15.39 per cent, down from 15.43 per cent in July and 15.91 per cent in June, according to the National Bureau of Statistics (NBS).
Food inflation also eased to 19.57 per cent in August from 20.31 per cent in July, while core inflation, which excludes some volatile items, declined to 13.29 per cent.
The moderation has strengthened expectations that the CBN could begin easing monetary policy after keeping the benchmark rate at 26.5 per cent for two consecutive meetings.
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However, rising global crude oil prices have introduced another risk. Oil prices have moved above $100 per barrel amid renewed tensions in the Middle East, raising concerns that higher energy and transportation costs could slow the decline in Nigeria’s inflation.
The CBN had identified higher global energy prices and geopolitical tensions as major risks to the inflation outlook at its July meeting.
The external environment has also become more challenging following the United States Federal Reserve’s decision to raise its benchmark interest rate by 25 basis points to 3.75–4 per cent on September 16.
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The MPC will therefore have to balance the benefits of lower interest rates for businesses and borrowers against the need to prevent renewed inflationary pressure and maintain macroeconomic stability.
The committee’s decision will be closely watched by investors, businesses and households as the direction of monetary policy could influence borrowing costs, investment activity, consumer spending and financial-market conditions in the coming months.
The outcome of the meeting will also provide an early indication of the direction of monetary policy ahead of the MPC’s next meeting, scheduled for November 23–24.
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By Onabanjo Boluwatife Ifeoluwa
boluwatifeonabanjo3@gmail.com