- Petroleum Price Hike
- Impact on Interest Rates
- TUC Concerns
With the recent surge in oil prices, Nigeria's Central Bank might reconsider its plans for raising interest rates at its upcoming meeting later this month.
Petroleum Price Hike
The recent 45% hike in petroleum prices in Nigeria might continue to put pressure on the Central Bank to pause the interest rate hike meeting scheduled for the end of September.
Impact on Interest Rates
Since 2022, Nigeria’s Central Bank has raised its interest rate by 15.25%, reaching a record 26.75% in July this year. The Monetary Policy Committee of the Abuja-based bank is set to discuss further steps on September 23 and 24. Central Bank Governor Olayemi Cardoso has repeatedly stated the commitment of monetary policymakers to fight inflation.
TUC Concerns
The Trade Union Congress of Nigeria (TUC) has expressed opposition to the hike, warning that it could increase poverty among workers. According to NNPC, the state-owned petroleum company raised gasoline prices to 897 naira ($0.56) per litre at three retail stations in Abuja.
The surge in oil prices, combined with inflation and pressure on the naira, may lead the Central Bank of Nigeria to revise its current plans to raise interest rates.
