Why rate hikes alone won’t solve Nigeria’s inflation crisis

With inflation reaching 32.7 percent in September 2024, Nigeria’s economic challenges are becoming harder to ignore. The Central Bank of Nigeria (CBN) has responded with an aggressive series of rate hikes, increasing the Monetary Policy Rate (MPR) by 850 basis points this year. Yet, the impact on inflation has been limited, raising concerns about the effectiveness of this strategy. Despite these drastic measures, inflation remains stubbornly high. While there was a brief dip in July and August, prices have continued to rise, especially for e