The Central Bank of Nigeria (CBN) has raised the interest rate by 150 basis points, increasing it from 24.75% to 26.25%. 

This decision was made following a two-day meeting of the bank’s Monetary Policy Committee (MPC), marking the third consecutive increase in the Monetary Policy Rate (MPR) aimed at curbing the country’s escalating inflation, which reached 33.69% in April 2024.

The CBN Governor, Olayemi Cardoso, stated that the Cash Reserve Ratio (CRR) for Deposit Money Banks (DMBs) remains unchanged at 45%. Additionally, the MPC maintained the Asymmetric Corridor around the MPR at +100 and –300 basis points and kept the liquidity ratio at 30%.

Cardoso acknowledged the significant inflation pressures facing the country, noting that the primary focus of the MPC meeting was to achieve price stability through the tools available to the central bank. 

He highlighted that the inflationary pressures are primarily driven by food inflation, with contributing factors including rising transportation costs, infrastructure challenges, insecurity, and exchange rate volatility.

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