Nigeria’s Central Bank has ended the year with a decisive move, raising interest rates to 27.5% in response to mounting inflationary pressures. The Monetary Policy Committee (MPC) increased the benchmark rate by 25 basis points during its final meeting of the year, underscoring its commitment to tackling rising consumer prices.
“The considerations of the meeting were held on the backdrop of renewed inflationary pressures as the headline food and core measures rose year on year in October 2024. Members therefore agreed unanimously to remain focused on addressing price developments,” stated Governor Yemi Cardoso at a media briefing on Tuesday.
This adjustment follows Nigeria’s stronger-than-expected economic performance in the third quarter of 2024, where GDP grew by 3.46%, largely driven by the services sector. However, the nation’s headline inflation surged to 33.8% in October, spurred by a combination of higher fuel prices and flooding in key agricultural regions.
Since the beginning of the year, the MPC has raised rates by a cumulative 8.75 percentage points in a bid to contain runaway inflation. Analysts had widely anticipated a 25 basis point hike, aligning with the Central Bank’s cautious but firm approach.
Economic Ramifications
The impact of the rate hike is expected to ripple through Nigeria’s financial sector. Banks, including Guaranty Trust Holding Co., Zenith Bank Plc, United Bank for Africa Plc, and FBN Holdings Plc, could see a boost in net interest income, which has already more than doubled this year. However, higher rates also pose risks.
“[The hike] could lead to an increase in the loan default rate, thereby impacting the non-performing loans ratio,” warned Samuel Onyekanmi, an analyst at Norrenberger.
Beyond the banking sector, concerns linger over whether monetary policy alone can curb inflation. Experts have called for complementary fiscal measures to address structural vulnerabilities that exacerbate price instability.
“To put inflation to bed for good, the government needs to step up and reduce the structural vulnerabilities that have brought about inflation spikes. If that doesn’t happen, CBN is simply swimming against the tide, and the inflation fight will have no end in sight,” commented David Omojomolo, Africa economist at Capital Economics.
A Challenging Road Ahead
While the Central Bank’s aggressive tightening may temporarily relieve inflationary pressures, the broader economic landscape remains precarious. Without strategic fiscal interventions, the battle against inflation could remain an uphill task, leaving businesses and consumers grappling with the consequences of rising costs.
I love to write about the things I love to read about. That includes sports, tech, DIYs, literature, music and entertainment. When I'm not writing, I'm either sleeping, reading, watching a funny Netflix series or eating a bowl of abula.
This fresh effort from the payments giant targets students, recent graduates, and professionals at the beginning of their careers. Participants will explore in-demand fields such as cybersecurity, design, marketing, and product management.
The directive, signed by Amonia Opusunju on behalf of the Director of Compliance, emphasised that institutions must rigorously monitor both local and international watchlists. These include the United Nations Consolidated Sanctions List and the Nigerian Sanctions List, maintained under the Terrorism (Prevention and Prohibition) Act 2022.
Launched in 2022 but fully operational by 2023, Hydrogen’s explosive growth is largely attributed to its increasing transaction volume, a broadening partner network, and an aggressive efficiency strategy. The fintech offers an extensive service bouquet including InstantPay, POS systems, cards, switching infrastructure, and a robust payment gateway.
FibreX comes with renewed efforts to expand the country’s fibre optic backbone. MTN Nigeria is supporting the Federal Government’s push to extend national fibre capacity from 35,000 km to 125,000 km—an ambitious plan that includes an additional 90,000 km of fibre.
Despite this industrial promise, Ghana’s 5G journey has been riddled with delays. From the initial target of December 2024, deadlines have slid — first to January 2025, and now June.
At the GITEX Africa 2025 summit, Nigeria’s tech policy chief, Kashifu Inuwa, took the spotlight, urging the global tech ecosystem to keep AI development grounded in human values. Representing the National Information Technology Development Agency (NITDA), Inuwa joined global industry players to unpack how artificial intelligence is reshaping businesses across the world. During a panel […]
The West African Examinations Council (WAEC) has introduced the first computer-based WASSCE for school candidates in Nigeria. WAEC announced the major shift during a press briefing at its national office in Yaba, Lagos, on Thursday. Dr. Amos Dangut, Head of WAEC Nigeria, said the council is fully prepared to conduct the 2025 exam using digital […]
This marks the seventh edition of the accelerator, open to Seed to Series A startups that have at least one founder of African descent, a live product in market, and a responsible approach to AI innovation.
Vendease CEO and co-founder Tunde Kara confirmed the exit, stating the business had recovered its investment in Ghana within six months.
The new PoS system comes with a range of advanced features, including real-time monitoring, instant settlements, pay-by-link options, and a 100% transaction success rate. It’s also been optimised to suit businesses of all sizes, giving merchants a more reliable and efficient way to manage their payments without disruption.
This fresh effort from the payments giant targets students, recent graduates, and professionals at the beginning of their careers. Participants will explore in-demand fields such as cybersecurity, design, marketing, and product management.
The directive, signed by Amonia Opusunju on behalf of the Director of Compliance, emphasised that institutions must rigorously monitor both local and international watchlists. These include the United Nations Consolidated Sanctions List and the Nigerian Sanctions List, maintained under the Terrorism (Prevention and Prohibition) Act 2022.
Launched in 2022 but fully operational by 2023, Hydrogen’s explosive growth is largely attributed to its increasing transaction volume, a broadening partner network, and an aggressive efficiency strategy. The fintech offers an extensive service bouquet including InstantPay, POS systems, cards, switching infrastructure, and a robust payment gateway.
FibreX comes with renewed efforts to expand the country’s fibre optic backbone. MTN Nigeria is supporting the Federal Government’s push to extend national fibre capacity from 35,000 km to 125,000 km—an ambitious plan that includes an additional 90,000 km of fibre.
Despite this industrial promise, Ghana’s 5G journey has been riddled with delays. From the initial target of December 2024, deadlines have slid — first to January 2025, and now June.
At the GITEX Africa 2025 summit, Nigeria’s tech policy chief, Kashifu Inuwa, took the spotlight, urging the global tech ecosystem to keep AI development grounded in human values. Representing the National Information Technology Development Agency (NITDA), Inuwa joined global industry players to unpack how artificial intelligence is reshaping businesses across the world. During a panel […]
The West African Examinations Council (WAEC) has introduced the first computer-based WASSCE for school candidates in Nigeria. WAEC announced the major shift during a press briefing at its national office in Yaba, Lagos, on Thursday. Dr. Amos Dangut, Head of WAEC Nigeria, said the council is fully prepared to conduct the 2025 exam using digital […]
This marks the seventh edition of the accelerator, open to Seed to Series A startups that have at least one founder of African descent, a live product in market, and a responsible approach to AI innovation.
Vendease CEO and co-founder Tunde Kara confirmed the exit, stating the business had recovered its investment in Ghana within six months.
The new PoS system comes with a range of advanced features, including real-time monitoring, instant settlements, pay-by-link options, and a 100% transaction success rate. It’s also been optimised to suit businesses of all sizes, giving merchants a more reliable and efficient way to manage their payments without disruption.
Strive for tech news and insights? Subscribe to our newsletter and stay up-to-date with the latest tech trends, expert insights, and exclusive content.
Start your perfect news blog or magazine with Caards, the premium WordPress theme you've been looking for.
Error: No feed found.
Please go to the Instagram Feed settings page to create a feed.
© 2022. All rights reserved by Axilthemes.
3 replies on “Nigeria’s Central Bank Tightens Grip with Fresh Interest Rate Hike”
[…] Central Bank of Nigeria (CBN) has reinstated Jimoh Musa Itopa as director of its Payments System Management Department […]
[…] the Zimbabwean central bank’s efforts, the newly introduced ZiG currency continues to depreciate. Will maintaining the 35% […]
[…] Ugandan authorities have arrested nine officials from the Ministry of Finance over an alleged cyber attack that led to the theft of USH 62 billion ($16.87 million) from the country’s central bank. […]