Central Bank of Nigeria raises interest rates by 150 basis points to tackle inflation surge

The Central Bank of Nigeria Monetary Policy Committee (MPC) announced a substantial increase in interest rates by 150 basis points, raising it from 24.75% in March to 26.25%.

CBN Governor, Olayemi Cardoso, revealed this pivotal decision during the 295th MPC press briefing held in Abuja.

The primary objective behind this interest rate hike is to tackle the persistent rise in inflation rates across the nation, which surged to 33.69% in April.

This proactive measure reflects the continued efforts of the CBN to curb inflationary pressures through monetary policy adjustments.

The decision comes amidst ongoing concerns regarding the country’s economic stability and the need to address inflationary trends effectively.

The 295th MPC meeting marks the third session convened since Cardoso assumed office as CBN Governor in September of the previous year.

This move represents a significant departure from Nigeria’s interest rate stance, which stood at 18.75% in May 2023.