In a bid to address the country’s soaring inflationary rate, the Monetary Policy Committee (MPC) of the Central Bank of Nigeria (CBN) has announced a significant hike in the benchmark interest rate. According to a communique issued on Tuesday by CBN Governor Yemi Cardoso after the second MPC meeting of his tenure in Abuja, the benchmark interest rate has been increased by 200 basis points to 24.75 percent.

This adjustment marks a notable escalation from the previous rate of 22.75 percent announced by the MPC just a month ago, constituting the second rate hike under the current committee.

Governor Cardoso emphasized that raising the interest rate reflects the committee’s commitment to combatting the country’s escalating inflationary pressures. Inflation in Nigeria surged to 31.70 percent in February, underscoring the urgency of measures to stabilize the economy.

The next MPC meeting is scheduled to take place between May 20th and 21st, 2024, where further monetary policy decisions will be deliberated.