The Central Bank of Nigeria (CBN) has raised the monetary policy rate, which serves as national interest rate, to 14 percent, in order to encourage savings and investment.

Speaking after the monetary policy committee (MPC) meeting in Abuja on Tuesday, Godwin Emefiele, governor of the bank, said the committee voted to hike interest rates in the face of rising inflation.

He said the committee voted that MPR be raised from 12 percent in May to 14 percent — the highest in at least 10 years.

https://www.thecable.ng/breaking-cbn-hikes-interest-rates-to-10-year-high

Hmm

JAkpayen:
This is the best decision to fight the stagflation being experienced in Nigeria's economy. It may help stabilise the naira but surely the country will head into recession. This is a bad time to go for loan

This is the worse decision, how can increase in interest rates be use to fight stagflation? It will pressure costs to rise even more.

It doesn't make sense to give money to investors at the expense of the masses. Create jobs first, it is the only way to fight whatever lackluster CBN created in the economy due to poor policy formulation.

Foreign investors won't still come, because not Nigeria's 2 percent increment will prompt them to forsake glaring global disaster to invest in an emerging economy saddled by angry militants.

^^^
The MPC decision was not to attract investors but to stabilise price. Read below:

The Committee’s Decisions

The MPC, recognizing that the Bank lacked the instruments required to directly jumpstart growth, and being mindful not to calibrate its instruments in such a manner as to undermine its primary mandate and financial system stability, in assessment of the relevant issues, was of the view that the balance of risks remains tilted against price stability.

Consequently, five (5) members voted to raise the Monetary Policy Rate while three (3) voted to hold.

In summary, the MPC voted to:

(i) Increase the MPR by 200 basis points from 12.00 to 14 per cent;
(ii) Retain the CRR at 22.50 per cent;
(iii) Retain the Liquidity Ratio at 30.00 per cent; and
(iv) Retain the Asymmetric Window at +200 and -500 basis points around the MPR

https://www.youtube.com/watch?v=DyDj89XIEZI

[size=14pt]Businesses unhappy as Nigeria's central bank hikes interest rate[/size]

In an apparent move to keep rising inflation in check, and stabilize its currency, Nigeria's central bank has increased the benchmark interest rate from 12 to 14 percent. However, it's left the cash reserve ratio at 22-point-5 percent and liquidity ratio at 30-percent. Central Bank Governor Godwin Emefiele says the recent rise in inflation is more of a structural issue than a monetary one. But the business community isn't happy.