Nigeria c.bank raises rates by 200bps

Central Bank of Nigeria (CBN) raised its monetary policy rate by 200 basis points to 24.75 per cent from 22.75 per cent, the CBN said in a statement on X on Tuesday.

This is only the second rate hike since Governor Olayemi Cardoso assumed office in September, with the last hike being in February, where the rate was raised by 4 percentage points—the largest hike in 17 years.

Inflation has surged above 30 per cent annually, the highest in nearly three decades, causing significant hardships for millions in Africa’s largest economy.

Cardoso stated that the Monetary Policy Committee remains committed to tightening measures to combat inflation.

According to Reuters, these price pressures stem from reforms initiated by President Bola Tinubu, including ending fuel subsidies and devaluing the naira currency twice.

While Tinubu defends these reforms as necessary for economic growth and investment, they have sparked public discontent and desperation.