By Milcah Tanimu

The Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has once again raised the interest rate benchmark, marking the third increase since Olayemi Cardoso assumed the role of governor.

During its two-day meeting, 12 MPC members voted to increase the Monetary Policy Rate (MPR) by 150 basis points, moving it from 24.75% to 26.25%, while keeping other policy parameters unchanged. This decision comes in response to Nigeria’s persistent headline inflation, primarily driven by rising food prices. Recent data from the nation’s statistics bureau revealed that headline inflation surged to 23.69% in April.

CBN Governor Cardoso expressed confidence in the measures taken so far, stating that the central bank’s tools are starting to yield positive results. “These strategies require time, but I am confident we are beginning to see relief. In due course, we will observe more favorable outcomes,” Cardoso said.

Furthermore, the CBN has initiated discussions with investors to enhance the financial sector’s robustness and increase market transparency, aiming to boost investor confidence in the Nigerian market.