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Vol 65 No 5

Published 29th February 2024


Spiralling prices imperil Tinubu’s reforms

Facing political pushback and food riots, the government is rethinking its devaluation and subsidy cuts

There was no hiding the desperation when Central Bank of Nigeria Governor Olayemi Cardoso announced on 27 February that interest rates would be hiked from 18.75% to 22.75%, the largest rate rise in absolute terms in 17 years. It was one of a slew of measures to stop the free fall of the naira, which has lost 40% of its value since the beginning of the year. They're not working yet. By the end of the day, the naira had fallen a further 2.1% on the bank's NAFEM window to end up at 1615.94 against the dollar, its lowest level on record.

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