The Central Bank of Nigeria (CBN) has raised the official interest rate by 50 basis point, raising the monetary interest rate to 18 per cent.

CBN Governor, Godwin Emefiele made the disclosure Tuesday, at a press briefing at the end of the Monetary Policy Committee (NPC) meeting of the bank in Abuja.

The CBN said the aim is to rein in inflation, citing the gains of previous rate highs as reason for its new action.

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Despite the consistent increase in official interest rate by the CBN since 2022, headline inflation has been on the rise, putting a question mark on the effectiveness of the money tightening measure of the apex bank.

But Mr Emefiele said although inflation has remained in the increase, the tightening measure has continued to reduce the rate of price increase, adding that the aim is to stop the rise in inflation.