According to Bank of America’s sub-Saharan Africa Economist, Tatonga Rusike, the Central Bank’s Monetary Policy Committee may need to increase interest rates by at least 700 basis points before the year ends in order to address the escalating inflation in Nigeria.

The removal of fuel subsidies and the unification of foreign exchange rates have contributed to soaring inflation.

Rusike warned that if inflation continues on its current trajectory, it could reach 30% by year-end, necessitating a monetary policy response.

Failure to take action could deter foreign investors from entering the country.

The Central Bank has been progressively raising interest rates since last year, and despite recent increases, inflation in Nigeria remains high, primarily driven by a significant rise in food prices, as reported by the National Bureau of Statistics.