Nigeria Raises Interest Rates to Record Highs Despite Warnings of Recession Risk

Central Bank of Nigeria has raised interest rates to record highs of 22.75% and restricted money supply to try to curb rising inflation.

Private sector and economists criticize the moves, saying it will lead to fresh job losses and possible recession.

They argue history shows interest rate hikes don't reduce inflation, which is driven by food, imported goods prices and the exchange rate.

Experts say the rate hikes will increase business borrowing costs, lower bank lending and asset quality, reduce GDP growth and increase unemployment.

However, some welcome the moves as necessary though painful steps to tackle spiraling inflation and stabilize the foreign exchange market.