The International Monetary Fund (IMF) has backed Nigeria’s interest rate hike of 22.75 percent, saying it will help to tame the country’s inflation which reached 29.90 percent in January.
Central Bank of Nigeria (CBN) Governor Olayemi Cardoso raised the benchmark lending rate last month. He said the aggressive rate push was needed as previous rate hikes had not cooled price pressures enough.
IMF is happy with the Nigerian government for heeding its earlier suggestion in December 2023 to hike the interest rate. It says the decision of the CBN will address the high inflation and weakness of the naira.
“The MPC increased the policy rate by 400 basis points to 22.75 percent for a total tightening of 1,025 basis points since May 2022,” IMF said, “This decision should help contain inflation, which reached 29.9 percent year-on-year in January 2024, and pressures on the naira.”
—Ezinwanne Onwuka reports for TruthNigeria from Abuja.
