The Monetary Policy Committee of the Central Bank of Nigeria has reduced the benchmark interest rate to 26.5 per cent, a move members of the Organised Private Sector described as minimal but a positive signal for businesses and the broader economy.

At the end of its 304th meeting in Abuja, the MPC cut the Monetary Policy Rate by 50 basis points from 27 per cent to 26.5 per cent. All 11 members of the committee were in attendance.

The CBN Governor, Olayemi Cardoso, announced the decision on Tuesday. “The committee decided to reduce the monetary policy rate by 50 basis points to 26.5 per cent,” Cardoso said.

He added that the MPC also resolved to “retain the Standing Facilities Corridor around the MPR at +50/-450 basis points” and to “retain the Cash Reserve Requirement for Deposit Money Banks at 45.00 per cent, Merchant Banks at 16.00 per cent, and 75.00 per cent for non-TSA public sector deposits.

The latest move marks the second rate cut under the current leadership of the apex bank, following a similar 50-basis-point reduction in September 2025 and a hold at the November 2025 meeting.

Cardoso said the decision was based on “a balanced evaluation of risks to the outlook,” which indicates that “the ongoing disinflation trajectory would continue, largely supported by the lagged transmission of previous monetary tightening, sustained exchange rate stability, and enhanced food supply.”

He disclosed that headline inflation eased to 15.10 per cent in January 2026 from 15.15 per cent in December 2025, marking the eleventh consecutive month of year-on-year decline. According to him, “Food inflation declined markedly to 8.89 per cent from 10.84 per cent,” while “core inflation declined to 17.72 per cent from 18.63 per cent.”

On a month-on-month basis, headline inflation fell to -2.88 per cent in January from 0.54 per cent in December, signalling what the committee described as “a continued softening of price pressures.”

The governor referenced the newly issued Presidential Executive Order 09, which redirects oil and gas revenues into the Federation Account. The committee “welcomed” the order and “acknowledged the potential impact of this Order in improving fiscal revenue and accretion to reserves.”

He reaffirmed the MPC’s commitment to “an evidence-based policy framework, firmly anchored on the Bank’s core mandate of ensuring price stability, while safeguarding the soundness and resilience of the financial system.” The next MPC meeting is scheduled for May 19 and 20, 2026.

Reacting to the decision, members of the Organised Private Sector described the 50-basis-point reduction as cautious but a welcome development. In separate interviews with The PUNCH, private sector leaders said the cut, though modest, signalled a gradual shift toward supporting growth.

Director-General of the Nigeria Employers’ Consultative Association, Adewale Oyerinde, said the marginal cut indicated that monetary authorities were responding to sustained pressures facing businesses.

“The marginal reduction in the benchmark interest rate represents a cautious but noteworthy signal that monetary authorities are beginning to respond to the sustained pressures facing businesses and the productive sector,” Oyerinde said.

He added, “While the 50 basis point reduction may not immediately translate into significantly lower lending rates, it reflects a gradual shift toward supporting economic growth without undermining price stability.”

Oyerinde stressed that the overall policy stance remained tight due to the retention of the Cash Reserve Ratio at 45 per cent for commercial banks and other liquidity controls. “With a substantial portion of bank deposits still sterilised, the capacity of financial institutions to expand credit to the real sector may remain constrained in the near term,” he remarked.

He noted that inflation, particularly in food, energy, and transportation, continued to pressure employers and households. “For the modest easing in policy rate to have a meaningful impact, it must be complemented by coordinated fiscal and structural reforms that address supply-side constraints, improve infrastructure, and enhance productivity,” Oyerinde said.

National Vice President of the National Association of Small-Scale Industrialists, Segun Kuti-George, described the move as a conscious adjustment to preserve recent monetary gains.

“What this interest rate cut means to me is a conscious adjustment to prevent botching the country’s monetary achievements,” Kuti-George said. “With these reasonable adjustments, there will hopefully be relative stability.”

He added that there had been some improvement in inflation trends, stating, “Prices of consumable goods, particularly foods, have generally stayed below what it used to be in the corresponding time of last year. We hope that the trend will be maintained.”

On his part, Director of the Centre for the Promotion of Private Enterprise, Dr Muda Yusuf, described the rate cut as growth-supportive but warned that weak policy transmission and fiscal vulnerabilities could blunt its impact.

“This policy direction is appropriate and growth-supportive. It reflects improving macroeconomic fundamentals and reinforces confidence in the economy’s stabilisation trajectory,” Yusuf said.

He cautioned that lending rates might remain elevated due to structural constraints, stressing, “Unless these structural rigidities are addressed, the benefits of monetary easing may not fully translate into lower borrowing costs for manufacturers, SMEs, agriculture, and other productive sectors.”

Yusuf added that fiscal consolidation remained the missing anchor. “Without fiscal consolidation, monetary easing could be undermined by continued fiscal pressures and crowding-out effects in the financial system,” he stated.

The Lagos Chamber of Commerce and Industry welcomed the rate cut as “cautious” and a signal of Nigeria’s shift to stabilisation and investment-led growth.

Director-General of the LCCI, Dr Chinyere Almona, said, “This move signals a significant shift from aggressive monetary tightening toward a stabilisation phase anchored on disinflation, exchange rate convergence, and improving supply-side conditions. It is a cautious, positive step in the right direction.”

The LCCI observed that, whereas the CBN’s decision to retain other monetary parameters suggests that liquidity conditions remain restrictive, the rate cut sends a critical confidence signal to the Organised Private Sector and establishes a pathway toward a gradual reduction in the cost of capital.

But Almona stressed that businesses still require tangible relief in financing costs to restore production, expand capacity, and preserve jobs.

The Central Bank of Nigeria (CBN) slowed naira appreciation at the official window and mopped up about $190 million from the local currency market last week.

The local currency had appreciated speedily at the official window, but the exchange rate retreated for the last three trading sessions that closed on Friday.

Some analysts warned that the naira’s successive rally would force foreign investors to exit the fixed-income market. Selling down their interest in investment securities will lead to a spike in demand for the US dollar.

This could plunge the market into abysmal conditions and increase US dollar outflow from the economy. Despite the absence of FX intervention, the local currency has been relatively stable versus the dollar.

Last week, CBN purchased $189.80 million to absorb excess supply and moderate naira gains, TrustBanc Financial Group Limited said in a report.

The investment firm said the currency strengthened across both segments, appreciating N9.09 week-on-week in the official window to N1,346.32/$, while the parallel market gained N60.00 to N1,340/$.

TrustBanc reported that the FX spread narrowed sharply to 0.47% from 3.29% last week, reflecting improved convergence between both markets.

On the macro front, analysts said firmer oil prices, rising reserves and reform-driven inflows continue to support currency stability despite lingering geopolitical risks.

Nigeria has moved to attract major foreign investment as the Minister of Finance and Coordinating Minister of the Economy, Wale Edun, received a delegation from GCL Group in Abuja to discuss projects valued at up to $5.7 billion across key sectors of the economy.

The delegation was led by Orji Uzor Kalu, according to a statement released Monday by the Finance Ministry on its X handle.

The ministry said the proposed investments would focus on large-scale power generation, local processing of mineral resources and the establishment of new manufacturing plants.

The statement added that the planned projects are designed to expand job opportunities, increase exports and encourage value addition within Nigeria rather than exporting raw materials

Officials explained that the engagement reflects growing interest from international investors, which they link to ongoing economic reforms introduced under the administration of Bola Ahmed Tinubu. The ministry said these reforms are helping to improve investor confidence and create conditions for long-term economic growth.

According to the statement, the discussions also support Nigeria’s broader goal of moving from dependence on raw commodity exports to a production-driven economy built on domestic processing and manufacturing.

The ministry added that strengthening electricity supply, expanding industrial capacity and improving local production remain central to the government’s economic strategy, noting that investments in these areas are expected to play a major role in boosting productivity and stabilising growth over time.

Moniepoint Inc., Africa’s leading all-in-one financial ecosystem, has released a new case study titled “The Business of Community Nightlife in Nigeria,” providing a rare, data-driven look into the country’s informal night economy.

While high-end “Detty December” venues grab headlines with daily revenues of ₦360million and table prices reaching ₦1.2million, Moniepoint’s research shifts the spotlight to the “community nightlife” where roadside bars, suya spots, and neighborhood joints form the bedrock of social life for millions of Nigerians.

The robust study was drawn from transaction data across more than 27,000 clubs, bars, and lounges sitting on Moniepoint’s payment rails alongside fieldwork with nightlife operators and workers across the country. Combining anonymised transaction data processed by Moniepoint with field interviews and observational research across multiple Nigerian cities, the study provides a rare, ground-level view of how money, labour, and social life intersect after dark.It is the latest in a series of sector-specific studies by the company aimed at bringing data visibility to Nigeria’s informal economy.

According to the report, in a stark contrast from wider informal economy trends, cash plays a diminishing role in nightlife payments. The report shows that bank transfers dominate, followed closely by card payments, with cash actively discouraged due to security concerns. Moniepoint’s data shows that transfers outpace card payments by nearly 2 million transactions during peak nighttime hours across its network.

One of the study’s most operationally significant findings concerns the timing of spending. Nightlife in Nigeria runs long but economically, the night is decided early. Transaction volumes begin climbing sharply from 8pm, peak before midnight, and then decline steadily even as venues remain full. By the time the night is at its longest, purchasing activity has already wound down. However, for bar operators, this has clear practical implications – the most critical hours for staffing, stocking, vendor payment and cash flow management are the earliest hours of the day between midnight and 6am.

The report further underscores the sector’s role in employment, noting that local bars typically expand their workforce by 30-50% on peak nights. Conservative estimates suggest at least 54,000 people are engaged in nightlife labor every night across Nigeria.

“Nigeria’s local bars and night-time operators are not peripheral to the economy, they are a critical part of its architecture. We see a substantial and sustained economic sector that employs hundreds of thousands of Nigerians every night and deserves the same attention we give to agriculture, healthcare, and retail. Our goal is to make sure every one of those businesses has the tools to grow. From giving credit to finance renovations and sound systems to providing same-day settlement that allows vendors to restock and with tools like Moniebook that power inventory management and reconciliation, Moniepoint is ensuring that this vital artery of the nation’s economy remains viable and empowering,” said Tosin Eniolorunda, Co-Founder and Group CEO, Moniepoint Inc.

Other key interesting findings include:

The most common transaction narrations from the data sourced – “food”, “pay”, “sent”, “pos”, “cash” – reflect the full breadth of nightlife spending: street food, club entry, lounge tabs, transport, and afterparties. Digital payments have gained huge traction in Nigeria’s social space.

While alcohol remains a key revenue driver, the data shows that food is the quiet stabiliser of Nigeria’s night economy, particularly in local and informal settings. In several neighbourhood venues, bottled water and meals outsell beer and spirits, especially early in the evening.

Lagos leads in sheer concentration of nightlife establishments, with 4,856 bars, clubs, and lounges on the Moniepoint network. FCT follows with 2,515, then Rivers (2,362), Delta (1,930), and Edo (1,574).

Katsina leads the country in nighttime food truck payment value, with vendors pulling in over ₦130 million in the last 12 months. Kwara State leads in transaction count. Nigeria’s nightlife economy is distributed, not overly elitist.

On the lending side, the report notes that a significant share of loan requests from bar and lounge operators is directed toward renovations, furniture, lighting, and sound systems showing that investments intended to attract and retain customers in a competitive sector where ambience plays a decisive role.

Moniepoint continues to fuel this sector through innovative features like “POS Transfers” and by assigning a dedicated bank account to each terminal, the system provides an instant “audio-visual” confirmation, a signature “ping”, that allows service to continue without the friction of waiting for SMS alerts or verifying screenshots. Furthermore, in addressing the unique safety needs of consumers, Moniepoint cards are designed without visible card numbers, expiry dates, or CVVs, ensuring that a customer’s financial information remains secure.

As Nigeria’s largest distributor of financial services, Moniepoint’s ongoing commitment to financial inclusion and economic development has positioned it as a catalyst for growth across Nigeria and beyond. The company processes billions in transactions monthly and continues to expand its reach, supporting millions of businesses with payments, banking, credit, and business management solutions.

The Petroleum and Natural Gas Senior Staff Association of Nigeria on Sunday renewed its call for the Federal Government to divest majority shares in the nation’s state-owned refineries, urging authorities to adopt the Nigeria LNG model by selling at least 51 per cent equity to core investors.

Under this arrangement, the government would retain a minority stake while selling a majority shareholding to core investors.

The National President of PENGASSAN and the Trade Union Congress, Festus Osifo, made the recommendation when he featured as a guest on Politics Today on Channels Television.

Osifo said the union had consistently canvassed partial privatisation of the refineries over the past two decades, insisting that government ownership structure had hindered efficiency and commercial viability.

He said, “We have always advocated in PENGASSAN in the last 20 years that the government should bring about the NLNG model in the refinery. And what is that? The government should take a minority stake in the refinery and sell the majority stake.

“At least, the government should sell a minimum of 51 per cent to investors. And these investors should be refiners. They shouldn’t just be portfolio investors or politicians or friends of the political class.

“But sell at least 51% of this refinery, you sell it to refiners. So we are not against the government selling a majority stake in the refinery. That is what we have advocated in recent years. If you check the NLNG model, it has worked. A combination of ENI, Total Energy and Shell has 51 per cent in NLNG.”

According to the union, divesting majority shares to private refiners would depoliticise refinery management, encourage fresh investment and promote profitability.

While expressing support for the current NNPCL management’s move to attract investors and divest, Osifo maintained that the government should still retain a minority stake to safeguard energy security.

“So when they are making decisions, their decisions are not subjected to any political whims and caprices. That is actually what we have advocated. The government should divest its interest in the refineries and allow a minimum of 51 per cent of its shareholding.

“Give it to private investors, let them invest, and allow them to come around the refineries. The advantage of it is that it will not be politicised. Businessmen will make business decisions that will impact and help them make a profit. That has been our position.

“Thank God, that is the direction this new NNPC management has said they are driving it to bring in investors and divest from it. But they should not sell it 100 per cent. The reason is because of energy security,” he assured.

Osifo’s position comes amid renewed debate over the future of Nigeria’s moribund state-owned refineries and the broader reform of the oil and gas sector following the commercialisation of the Nigerian National Petroleum Company Limited.

His comments also followed remarks by the Group Chief Executive Officer of the NNPC, Bayo Ojulari, who on Saturday praised Africa’s largest single-train refinery, the Dangote Petroleum Refinery, describing it as a symbol of “technological audacity and national pride.”

Ojulari spoke during a landmark visit to the 650,000 barrels-per-day facility alongside members of the NNPC board and executive management team — the first official tour of the refinery by the senior leadership of the state oil firm. NNPC currently holds a seven per cent equity stake in the privately owned refinery.

The call by PENGASSAN signals organised labour’s conditional support for majority private participation in the country’s refining sector, provided the government retains a minority stake to safeguard energy security while insulating operations from political interference.

Oando Plc has commenced the second tranche of its stock dividend distribution, continuing the issuance of 1.28 billion additional shares to shareholders.

The milestone follows shareholder approval granted at the company’s 45th Annual General Meeting held on December 17, 2024, the firm stated in a statement on Sunday. At the meeting, shareholders authorised the Board to distribute shares received pursuant to the AGM resolution to shareholders of record on a pro-rata basis at dates determined by the Board.

Pursuant to this mandate, Oando notified the Nigerian Exchange Limited and the investing public on February 5, 2025, that the Board, at its meeting on January 30, 2025, resolved to implement the distribution in phases over a 36-month period commencing January 30, 2025.

The first tranche, covering shareholders on the register at the close of business on February 14, 2025, was completed in August 20

Building on this, on February 10, 2026, the Board of Directors approved the commencement of Tranche 2, involving the distribution of 604,348,395 ordinary shares to shareholders on record as of June 30, 2025. The shares will be distributed on a pro-rata basis of two new ordinary shares for every 27 existing ordinary shares held. The Tranche 2 distribution is expected to be completed on or before March 31, 2026.

The phased distribution approach is part of the company’s efforts to enhance shareholder value while maintaining market stability and investor confidence in its long-term prospects.

The development follows Oando’s operational and financial performance in 2024 and 2025 after its $783m acquisition of the Nigerian Agip Oil Company and expansion across Africa, including the award of Block KON 13 in Angola’s Onshore Kwanza Basin.

Through the continued share distribution, Oando said it is reinforcing its position as a shareholder-focused company pursuing value creation, operational excellence, and sustainable growth across the African energy landscape.

Nigeria’s capital market has recorded a remarkable 125 per cent growth in market capitalisation since April 2024, rising from about N55 trillion to over N123.93 trillion, the Director-General of the Securities and Exchange Commission (SEC), Dr. Emomotimi Agama, has disclosed.

 

Agama also said the market’s contribution to the nation’s Gross Domestic Product (GDP) has increased significantly from 13 per cent to 33 per cent within the same period, underscoring the sector’s expanding role in economic development.

 

He spoke in Lagos during his inaugural address to members of the Capital Market Working Group on Market Liquidity at the Commission’s office.

 

The SEC boss described the growth figures as evidence of strong investor confidence and the resilience of the Nigerian capital market under the current administration, but stressed that market size alone was not enough without corresponding depth and liquidity.

 

“Since this administration came into being in April 2024, we have seen market capitalisation grow from about N55 trillion to over N123.93 trillion. Our contribution to GDP has moved from 13 per cent to 33 per cent. These are impressive figures, but they tell only part of the story,” he said.

 

According to him, liquidity remains critical to sustaining the growth momentum, noting that a market must be deep and efficient to effectively perform its primary function of capital formation.

 

“A capital market is often described as the barometer of an economy’s health. But for that barometer to be accurate, the market must be more than just large—it must be liquid,” he said.

 

Agama identified key structural challenges, including high transaction impact costs for institutional investors and the concentration of trading activities in a limited number of highly capitalised stocks, which he said leaves the broader market relatively shallow.

 

He warned that without sufficient liquidity, investors may be reluctant to enter the market if they are uncertain about their ability to exit positions without significant price distortions.

 

To address these concerns, the SEC inaugurated a multi-stakeholder Working Group comprising exchanges, custodians, fund managers, dealing members and other market operators. The group is expected to develop practical recommendations to improve trading efficiency, deepen participation and enhance price discovery.

 

Among its mandates are a comprehensive review of trading and settlement infrastructure, identification of technical and structural bottlenecks affecting transaction speed, and proposals to make Nigeria’s settlement cycle more competitive with other emerging markets.

 

The group is also expected to recommend measures to broaden retail participation, with the SEC targeting the onboarding of up to 20 million new investors through digital platforms, dematerialisation of share certificates and fintech partnerships.

 

Agama noted that product innovation would also be central to improving liquidity, particularly through the accelerated development of derivatives and other asset classes that can provide hedging opportunities and deepen market activity.

 

He added that the recently enacted Investments and Securities Act (ISA) 2025 has expanded the Commission’s regulatory oversight to include digital assets, creating an opportunity to channel speculative interest into regulated and productive investment channels.

 

Emphasising the strategic importance of the sector, the SEC DG said it plays a critical role in financing infrastructure, supporting businesses and driving job creation.

 

“The capital market is not gambling; it is the engine of national development. It finances roads, powers factories and creates jobs,” he said.

 

Agama urged members of the Working Group to produce bold and practical recommendations that would strengthen liquidity and support the Federal Government’s broader ambition of building a trillion-dollar economy.

 

He added that while the recent surge in market capitalisation and GDP contribution reflects strong progress, the next phase of reforms would focus on ensuring that the market is not only large, but deep, inclusive and globally competitive.

 

In his remarks, chairman of the Committee and Group CEO of NGX, Mr. Temi Popoola thanked the SEC for the opportunity and assured the DG that the team understands its mandate and will diagnose structural constraints with candour, align on practical reforms, and deliver measurable actions that will deepen liquidity, restore confidence, and strengthen the resilience of our market.