The Central Bank of Nigeria (CBN) policy-setting committee increased the monetary policy rate (MPR), which measures interest rates, from 17.5 percent to 18 percent.
Nigeria’s inflation rate climbed to 21.91 percent last week as cash shortages persisted.
The monetary policy rate (MPR) is the baseline interest rate in an economy, upon which all other interest rates are based.
The governor of the central bank, Godwin Emefiele, disclosed the development to journalists on Tuesday after the committee met at the CBN headquarters in Abuja.
The move marks the apex bank’s second consecutive increase in the benchmark rate this year.
Emefiele stated that the committee members voted to raise the interest rate.