This Week in Money: Top Financial and Pension News from Nigeria, Africa and the World

CBN cuts the benchmark rate by 350 basis points to 23%

The Central Bank of Nigeria’s Monetary Policy Committee ended its 307th meeting in Abuja on Tuesday, 22 September, by resetting the Monetary Policy Rate from 26.5% to 23%. It is the second cut of 2026, after a 50 basis point reduction in February, and the largest single cut in the bank’s history.

Governor Olayemi Cardoso described the move as an operational realignment rather than a change in stance. The committee felt the policy rate had drifted too far from actual market rates, which weakened its influence. The corridor around the rate was also adjusted, setting the Standing Lending Facility at 23.5% and the Standing Deposit Facility at 20%. The Cash Reserve Ratio stays at 45% for commercial banks and 16% for merchant banks, and the Liquidity Ratio remains at 30%.

The cut came as headline inflation eased slightly to 15.39% in August from 15.43% in July, although the committee flagged renewed pressure from food and core prices.

Stocks extend their winning streak after the rate cut

Investors moved quickly after the MPC announcement. The NGX All Share Index rose every day from Monday to Thursday, closing Thursday at 252,150.01 points. By Wednesday, the rally had stretched to ten sessions in a row, and market capitalisation reached a record of about ₦163 trillion before climbing to ₦163.68 trillion on Thursday. Banking stocks such as Zenith, First HoldCo, GTCO and Access Holdings were among the most active.

Pension industry commits ₦241 billion to infrastructure, targets ₦300 billion

PenCom Director General Omolola Oloworaran announced on Thursday that pension operators have committed ₦241 billion to a new infrastructure vehicle, the Pension Industry Infrastructure Consortium, set up with FSD Africa. She expects total commitments to reach almost ₦300 billion once all operators confirm. No money has been invested yet and the specific projects have not been chosen. A fund manager still needs to be appointed, and the first tranche is expected to go out by the second quarter of 2027.

She also said the council has approved an independent assessment of the industry against global benchmarks, and that PenCom is working with operators on a Pensions 2030 Transformation Agenda, which is still at the concept stage.

Oil climbs again and global bonds sell off

Brent crude rose above $106 a barrel on Thursday, up about 22% over the past month, as there was little progress towards ending the Middle East war. Most stock markets fell and bonds sold off on inflation worries. Strong US business data added to expectations that the Federal Reserve, which raised rates last week for the first time since 2023, will hike again in October. Markets now price that chance at around 75%, up from 55% a week earlier. Investors were also watching a summit between US President Donald Trump and Chinese leader Xi Jinping at the White House.

A national survey to reach informal workers

The Pension Industry Association of Jamaica has commissioned a national study on how people save for retirement, with a focus on self employed and informal workers. Ideas being considered include simpler enrolment, flexible contributions and mobile wallet payments. Nigeria faces a similar challenge in extending pension coverage to its large informal sector through the Micro Pension Plan.