The Central Bank of Nigeria (CBN) has raised the country’s interest rate by 50 basis points, bringing it to 27.25%. This marks the fifth consecutive increase in 2024, aimed at curbing inflation.
CBN Governor Olayemi Cardoso made the announcement at a press briefing after the 297th Monetary Policy Committee (MPC) meeting held in Abuja. Despite the country’s inflation rate easing to 32.15% in August, the bank has continued to raise interest rates since February 2024.
The previous interest rate hike was in July, where it was raised to 26.75%. Economic experts, including Muda Yusuf, Executive Director of the Centre for the Promotion of Private Enterprise, have called for a pause in these hikes, as concerns grow about their impact on the private sector.
This recent increase follows a 0.5% interest rate cut by the United States Federal Reserve, highlighting the contrast in monetary policy approaches between the two nations. Before Cardoso’s appointment in 2023, Nigeria’s interest rate stood at 18.75%.
With the continued rise in rates, the economic impact on borrowing and business activities remains a critical point of discussion among policymakers and analysts.
