For the first time in years, the Central Bank of Nigeria (CBN) has increased the interest rate to 13.5 percent.
The CBN governor, Godwin Emefiele, announced the increase on Tuesday.
He made the announcement while speaking to reporters during a meeting of the Monetary Policy Committee (MPC) in Abuja.
The rate of interest was raised from 11.5 to 13.5 percent.
On the increase, Emefiele said the MPC is concerned that inflation may be rising too quickly.
According to him, the MPC needed to raise the monetary policy rate by 150 basis points to avoid imminent inflation.
Meanwhile, the CBN maintained an asymmetric corridor around the MPR of +100/-700 basis points, a 27.4 percent Cash Reserve Ratio (CRR), and a 30 percent Liquidity Ratio (LR).
Ada Peter
