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Nigeria’s central bank interest rate increased by 200 basis points to 24.75% from the previous 22.75%, according to Governor Olayemi Cardoso. This decision marks a continuation of the bank’s efforts to combat surging inflation.
Nigeria’s central bank interest rate increased by 200 basis points to 24.75% from the previous 22.75%, according to Governor Olayemi Cardoso. This decision marks a continuation of the bank’s efforts to combat surging inflation.
Last month, the bank executed its most substantial rate hike in approximately 17 years, elevating the rate by 4 percentage points in a bid to rein in inflationary pressures. With inflation surpassing 30% on an annual basis, reaching its highest level in nearly three decades, the country grapples with a cost-of-living crisis affecting millions of its citizens.
Governor Cardoso emphasized the Monetary Policy Committee (MPC)’s unanimous conviction to persist with the tightening measures to curb inflation while anticipating a moderation in price pressures starting in May. He underscored the committee’s focus on stabilizing inflation expectations and ensuring sustained exchange rate stability.
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This recent decision by the MPC, only the second under Governor Cardoso’s tenure since assuming office in September, follows a series of reforms initiated by President Bola Tinubu, including the cessation of a burdensome fuel subsidy and the devaluation of the national currency, the naira, on two occasions.
