What do you believe is the single most important factor driving up the cost of living in Nigeria?

The amount spent on loan repayments during this period is reflective of the high interest-rate operating environment, with the country’s benchmark rate at a whopping 27.25 per cent.

On Tuesday, the Monetary Policy Committee of the Central Bank of Nigeria for the fifth time this year voted to increase the monetary policy rate, which measures the benchmark interest rate, to 27.25 per cent.

This new rate, a move that stunned the financial markets, is an increase of 50 basis points from 26.75 per cent announced by the apex bank in July 2024.

It also reflects an 850 basis point or 8.5 per cent increase in interest rates under the current leadership, which took office a year ago and continues the spate of interest rate hikes going as far back as May 2022 when the hawkish monetary policy actions began.

The Governor of CBN, Olayemi Cardoso, has maintained that the bank would continue to tighten monetary policy to combat the high inflation rate.

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