To combat high inflation and a plummeting currency, Nigeria's central bank has hiked interest rates to 24.75%. Despite a recent modest improvement, the naira still remains weakened compared to the dollar. The bank's members had varying views on the inflation drivers, leading to a wide range of proposed rate increases. The bank intends to continue tightening and prioritizes tackling inflation over economic growth concerns. Further hikes are expected in May and July before the tightening cycle concludes.
Nigeria's economy faces significant challenges with inflation at 29.9%, a plummeting currency, and high cost of living. Government reforms have led to surging inflation, despite social protection measures and efforts to boost production. Food insecurity affects 8% of the population, while the central bank raises interest rates to combat inflation. Private sector growth is slowing, and economic experts forecast modest growth in 2024. Addressing price pressures and insecurity remains crucial.
