Nigeria’s Central Bank has reduced its benchmark interest rate to 27 percent under the guidance of Governor Olayemi Cardoso and in coordination with Minister of Finance Wale Edun. The move is part of a broader strategy to stimulate economic growth ease borrowing costs and encourage investment across sectors

The rate reduction follows a five-month trend of declining inflation with the Consumer Price Index dropping to 20.12 percent in August from 21.88 percent in July. The Central Bank attributed the decision to sustained disinflation and the need to support economic recovery efforts while ensuring financial stability

Economists and business leaders have welcomed the move noting that lower borrowing costs will make credit more accessible particularly for small and medium-sized enterprises. The cut is expected to encourage business expansion attract investment and generate jobs especially for Nigeria’s large youth population though some analysts caution that systemic banking challenges may slow the immediate impact