Nigeria’s central bank slashed its key interest rate by 350 basis points to 23 percent, its biggest easing move in a tightening cycle that had held rates at 26.5 percent. Analysts expect the cut to drag fixed-income yields lower and drive investors toward equities.

The CPPE welcomed the move as a pivot toward growth, noting inflation had cooled to 15.39 percent and market rates were already trading near 20 percent — undercutting the old policy rate’s relevance. But NECA cautioned that banks’ 45 percent Cash Reserve Requirement means cheaper loans for businesses won’t come automatically or quickly.

The CBN also tightened its rate corridor to +50/-300 basis points, setting lending and deposit facility rates at 23.5 percent and 20 percent respectively.

The main risk: easing while other major economies stay tighter could narrow Nigeria’s rate advantage and spark capital outflows, pressuring the naira — though the CPPE says stronger reserves put Nigeria in a better position than in past cycles.