The Central Bank of Nigeria (CBN) is convening its Monetary Policy Committee (MPC) meeting on November 25 and 26, 2024.
The primary agenda is to decide on the country's interest rate, which has been maintained at 27.25 percent since September 2024.
This decision comes at a time when Nigeria is grappling with a headline inflation rate that surged to 33.88 percent in October 2024.
The CBN, under the leadership of Governor Olayemi Cardoso, has consistently raised interest rates as a strategy to combat inflation.
Cardoso has reiterated the bank's commitment to "do everything to bring down Nigeria’s inflation." However, this approach has sparked a debate among economic stakeholders.
The Centre for the Promotion of Private Enterprise has urged a pause in interest rate hikes, arguing that continuous increases could stifle economic growth.
Conversely, the Financial Derivative Company advocates for further rate hikes, emphasizing the need to tackle the persistent inflationary pressures.
This MPC meeting is not just about interest rates; it also reflects broader economic challenges. For instance, the Nigerian Communications Commission (NCC) is currently working with the CBN to resolve a significant N250 billion debt issue related to Unstructured Supplementary Service Data (USSD) usage between telecom operators and banks.
This debt, which has been accumulating since 2019, underscores the complexities of managing operational costs in Nigeria's financial ecosystem.
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