Business
JUST IN: CBN raises interest rate to 24.75% in bid to curb inflation

In a move aimed at tackling the rising inflation in Nigeria, the Central Bank of Nigeria’s (CBN) Monetary Policy Committee (MPC) has announced a significant increase in the benchmark interest rate.
The Monetary Policy Rate (MPR) which was previously 22.75 now stands at 24.75%.
Speaking to journalists after the MPC meeting, CBN Governor Yemi Cardoso, emphasized the committee’s commitment to curbing inflation and restoring the purchasing power of Nigerians.
He outlined the various policy adjustments implemented:
The most significant change is the substantial increase in the MPR to 24.75%. This makes borrowing more expensive, aiming to reduce spending and slow economic growth, ultimately bringing down inflation.
The CBN has also adjusted the Cash Reserve Ratio (CRR) for commercial banks, maintaining it at 45%. However, the CRR for merchant banks has been increased from 10% to 14%.
Additionally, the liquidity ratio remains unchanged at 13%. These measures aim to tighten control over the money supply in circulation, further dampening inflationary pressures.
Cardoso highlighted the importance of food security in the fight against inflation. He urged the federal government to fully implement its agricultural programmes, aiming to increase domestic food production and reduce reliance on imported food items, which can be susceptible to price fluctuations.
The increased interest rate will have a ripple effect throughout the Nigerian economy. Borrowers, including businesses and individuals, can expect to pay more for loans, potentially impacting investment and consumer spending.
However, the CBN’s actions are intended to bring down inflation in the long run, which would ultimately benefit Nigerians by stabilizing prices and protecting their purchasing power.
The MPC’s decision to aggressively raise interest rates reflects the seriousness of Nigeria’s inflation challenge.
Whether these measures will achieve the desired outcome remains to be seen. The effectiveness will depend on various factors, including the government’s success in boosting food production and the overall response of the Nigerian economy to tighter monetary policy.
Business
How were Donald Trump’s tariffs calculated?
In total, more than 100 countries are covered by the new tariff regime.

Charts credit: White House/ BBC Verify
US President Donald Trump has imposed a 10% tariff on goods from most countries being imported into the US, with even higher rates for what he calls the ”worst offenders”.
But how exactly were these tariffs – essentially taxes on imports – worked out? BBC Verify has been looking at the calculations behind the numbers.
What were the calculations?
When Trump presented a giant cardboard chart detailing the tariffs in the White House Rose Garden it was initially assumed that the charges were based on a combination of existing tariffs and other trade barriers (like regulations).
But later, the White House published what might look like a complicated mathematical formula.


But the actual exercise boiled down to simple maths: take the trade deficit for the US in goods with a particular country, divide that by the total goods imports from that country and then divide that number by two.
A trade deficit occurs when a country buys (imports) more physical products from other countries than it sells (exports) to them.
For example, the US buys more goods from China than it sells to them – there is a goods deficit of $295bn.
The total amount of goods it buys from China is $440bn. Dividing 295 by 440 gets you to 67% and you divide that by two and round up. Therefore the tariff imposed on China is 34%.
Similarly, when it applied to the EU, the White House’s formula resulted in a 20% tariff.
Are the Trump tariffs ‘reciprocal’?
Many commentators have pointed out that these tariffs are not reciprocal.
Reciprocal would mean they were based on what countries already charge the US in the form of existing tariffs, plus non-tariff barriers (things like regulations that drive up costs).
But the White House’s official methodology document makes clear that they have not calculated this for all the countries on which they have imposed tariffs.
Instead the tariff rate was calculated on the basis that it would eliminate the US’s goods trade deficit with each country.
Trump has broken away from the formula in imposing tariffs on countries that buy more goods from the US than they sell to it.
For example the US does not currently run goods trade deficit with the UK. Yet the UK has been hit with a 10% tariff.
In total, more than 100 countries are covered by the new tariff regime.‘
Lots of broader impacts’Trump believes the US is getting a bad deal in global trade.
In his view, other countries flood US markets with cheap goods – which hurts US companies and costs jobs.
At the same time, these countries are putting up barriers that make US products less competitive abroad.So by using tariffs to eliminate trade deficits, Trump hopes to revive US manufacturing and protect jobs.
But will this new tariff regime achieve the desired outcome?
BBC Verify has spoken to a number of economists. The overwhelming view is that while the tariffs might reduce the goods deficit between the US and individual countries, they will not reduce the overall deficit between the US and rest of the world.
“Yes, it will reduce bilateral trade deficits between the US and these countries.
But there will obviously be lots of broader impacts that are not captured in the calculation”, says Professor Jonathan Portes of King’s College, London.
That’s because the US’ existing overall deficit is not driven solely by trade barriers, but by how the US economy works.For one,
Americans spend and invest more than they earn and that gap means the US buys more from the world than it sells. So as long as that continues, the US may continue to keep running a deficit despite increasing tariffs with it global trading partners.
Some trade deficits can also exist for a number of legitimate reasons – not just down to tariffs. For example, buying food that is easier or cheaper to produce in other countries’ climates.
Thomas Sampson of the London School of Economics said: “The formula is reverse engineered to rationalise charging tariffs on countries with which the US has a trade deficit.
There is no economic rationale for doing this and it will cost the global economy dearly.”
Business
CBN denies introducing N5000, N10,000 notes

The Central Bank of Nigeria, CBN, has denied introducing new N5,000 and N10,000 notes.
CBN described the reports as false.
There has been widespread reports that the CBN had unveiled the high-denomination bank notes to enhance cash transactions.
The report said the apex bank was set to introduce the new notes to reduce cash-handling costs and improve liquidity management.
Some of the reports attributed the introduction of the new notes to a supposed Deputy Governor, Dr Ibrahim Tahir Jr.
It was reported that the new notes would be released from May 1, 2025.
However, posting the reports on its X page, the CBN wrote: “This content is NOT from the Central Bank of Nigeria.
Kindly note that the official website of the CBN is cbn.gov.ng.”
Business
Italy Funding Africa’s coffee industry with €15 million
The UNIDO Director -General, Gerd Müller, emphasized the urgency and significance of the partnership, stating: “Around 125 million people worldwide depend on coffee for their livelihoods.

Image credit: The Expressowork
The government of Italy is making €15 million available to the United Nations Industrial Development Organization (UNIDO) for the promotion of sustainable coffee production in Africa.
The funding arrangement was signed recently by Debora Lepre, the Ambassador and Permanent Representative of Italy to the International Organizations in Vienna, and the UNIDO Director- General, Gerd Muller.
Ambassador Lepre expressed Italy’s commitment to supporting sustainable agriculture and economic resilience, stating: “The signing of this funding arrangement marks an important milestone in our long-standing collaboration with UNIDO and aims to trigger a chain reaction to attract other partners and investments, promoting a new paradigm of development cooperation as a partnership between equals.”
The UNIDO Director -General, Gerd Müller, emphasized the urgency and significance of the partnership, stating: “Around 125 million people worldwide depend on coffee for their livelihoods.
This programme will help to improve the lives of the people at beginning of the coffee supply chain. Better jobs and better incomes for families and communities. I am very grateful to the Government of Italy and to all of our other partners in this initiative. Transforming Africa’s Coffee Sector: UNIDO and Italy Drive Climate-Resilient Solutions.”
Coffee remains one of the world’s most important cash crops deeply embedded in our cultures and economies, sustaining over 12.5 million farms globally.
In Africa, coffee accounts for approximately 12% of the global production.
Coffee plays a fundamental role, representing a source of foreign currency, tax income generation, and jobs in both producing and consuming countries.
Despite the increasing global demand for coffee, the sector faces mounting challenges, including climate change, fluctuating global prices, and regulatory pressures, all of which threaten the livelihoods of millions of smallholder farmers.
-
News2 days ago
Kogi State enforces ban on rallies, public gatherings amidst riding security concerns
-
News2 days ago
President Tinubu congratulates Jim Ovia on admission to the freedom of the city of London
-
Politics2 days ago
I would have handled economy better than Tinubu – Obi
-
Sports2 days ago
NTTF U-12 National Hopes Week kicks off today in Lagos
-
News2 days ago
BREAKING: Tinubu Sacks NNPCL Board , Replaces Mele Kyari with Bashir Ojulari as Group CEO
-
Business2 days ago
Women make up 15% of 288 new billionaires in 2025
-
Politics2 days ago
New Political Party – TNN, Seeks INEC Registration
-
Business2 days ago
FG borrows N13.21trn from World Bank in 20 months