The Central Bank of Nigeria has hiked the monetary policy rate (MPR) by 400 basis points to reach a record 22.75%.

Yemi Cardoso, the CBN governor, announced this during the Monetary Policy Committee (MPC) meeting, marking his first time presiding since assuming office in September 2023.

Over four consecutive meetings in 2023, Nigeria's MPC implemented a strategy to gradually increase the MPR. The year ended with a significant rate of 18.75%.

Throughout this time period, despite these aggressive efforts, other crucial indicators such as the Cash Reserves Ratio (CRR) and Liquidity Ratio remained constant, with the CRR staying at 32.5 percent and the Liquidity Ratio at 30.0 percent.