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ActionAid Nigeria Responds to CBN’s Interest Rate Hike, Highlights Economic Implications and Proposes Solutions
ActionAid Nigeria Responds to CBN’s Interest Rate Hike, Highlights Economic Implications and Proposes Solutions
By: Michael Mike
ActionAid Nigeria acknowledges the Central Bank of Nigeria’s (CBN) recent decision to raise the Monetary Policy Rate (MPR) to 26.25%, as announced by Governor Yemi Cardoso during the 295th Monetary Policy Committee (MPC) meeting. This marks the third consecutive increase aimed at curbing the surging inflation, which currently stands at 33.69%.
Speaking at its head office in Abuja, ActionAid Nigeria’s Country Director, Andrew Mamedu, noted that, “While the decision to adjust the MPR demonstrates a proactive approach to achieving price and economic stability, it is important to acknowledge its broader implications. We recognise that although inflation is still rising, the month-on-month rate increase is reducing. In the other hand, the increased MPR will inevitably lead to higher borrowing costs for businesses and individuals. Small and Medium-sized Enterprises (SMEs), which are the backbone of our economy, will face heightened challenges in accessing affordable credit. This could stifle innovation, growth, and job creation within this vital sector.
For vulnerable populations, the rising cost of living and food prices, exacerbated by higher interest rates, will further strain their already limited financial resources. This becomes a case of double jeopardy of high inflation and high interest rates. As the cost of borrowing increases, so does the difficulty in securing loans for essential needs, pushing many deeper into poverty.”
To mitigate the impacts of the increase in interest rates and inflation, ActionAid Nigeria proposes that the Federal and State Governments must immediately step-up social protection programs to support the most vulnerable populations. This includes expanding food assistance initiatives, providing targeted financial aid to low-income families, and offering more support to other social sectors, including education, health, and housing.
Andrew Mamedu also reiterated that “It is only fair for the CBN to increase special credit facilities with lower interest rates for SMEs at this crucial time to ensure they can continue to operate and grow. Providing technical and financial support to these businesses will help them sustain their contributions to the economy. Additionally, not many people understand the implications of this hike in interest rates. It is very important for the CBN to collaborate with the National Orientation Agency (NOA) to engage with the public and stakeholders to explain the rationale behind these economic policies. This will foster understanding and patience and enhance transparent communication from the government to manage expectations and build trust and get the citizens to hold greedy businesses and individuals accountable from exploiting the system.
The country director concluded that the fiscal aspects of the economy need to complement the CBN’s efforts in managing monetary policy. This includes improving the ease of doing business, implementing progressive taxation, and ensuring effective budgeting and budget utilisation.
ActionAid Nigeria remains committed to working with the government, private sector, and civil society to address these challenges and promote a more inclusive and resilient economy.
ActionAid Nigeria Responds to CBN’s Interest Rate Hike, Highlights Economic Implications and Proposes Solutions
News
Nigeria, Aid Partners Seek $516m to Support 2.5 Million Vulnerable People in North-East in 2026
Nigeria, Aid Partners Seek $516m to Support 2.5 Million Vulnerable People in North-East in 2026
By: Michael Mike
The Federal Government, in collaboration with humanitarian partners, has launched an urgent appeal for US$516 million to deliver life-saving assistance to 2.5 million people affected by conflict and deprivation in Borno, Adamawa and Yobe (BAY) States in 2026.
The appeal is contained in Nigeria’s 2026 Humanitarian Needs and Response Plan (HNRP) and targets the most severe humanitarian cases in the conflict-affected north-east, where women and children account for nearly 80 per cent of those in critical need.
The humanitarian crisis in the BAY states has been worsened by a prolonged 16-year insurgency, widespread displacement, limited access to essential services, climate-related shocks, economic hardship, and shrinking livelihood opportunities.
Speaking at the launch in Abuja, UN Resident and Humanitarian Coordinator in Nigeria, Mohamed Malick Fall, warned that humanitarian needs are escalating at a time of declining global funding. He noted that delays in closing funding gaps could have fatal consequences, especially for malnourished children.
According to projections, about 3 million Nigerian children under the age of five are expected to suffer from severe acute malnutrition in 2026, with one million of them living in the BAY states. In addition, nearly 35 million Nigerians may face acute food insecurity during the 2026 lean season, including 5.8 million people in the north-east.
The 2026 HNRP places strong emphasis on a transition to nationally-led humanitarian action, as international funding continues to decline globally. The plan highlights the need for closer collaboration between government institutions and humanitarian actors to sustain assistance during this transition.
In his remarks, the Minister of Humanitarian Affairs and Poverty Reduction, Dr. Bernard Doro, reaffirmed the Federal Government’s commitment to leading and coordinating humanitarian responses. He said government efforts would focus on aligning humanitarian action with national reforms aimed at poverty reduction, human capital development, and community resilience.
Governors of the BAY states — Professor Babagana Zulum of Borno, Ahmadu Umaru Fintiri of Adamawa, and Mai Mala Buni of Yobe — also pledged stronger cooperation with humanitarian partners to deliver urgent aid while pursuing long-term solutions for displaced and conflict-affected populations.
Funding for the **2025 HNRP stood at $282
Nigeria, Aid Partners Seek $516m to Support 2.5 Million Vulnerable People in North-East in 2026
News
Troops clear multiple settlements in Shiroro LGA, neutralize IEDs during clearance operation
Troops clear multiple settlements in Shiroro LGA, neutralize IEDs during clearance operation
By: Zagazola Makama
Troops of 1 Division Nigerian Army have successfully cleared multiple settlements in Shiroro Local Government Area of Niger State, neutralizing improvised explosive devices (IEDs) and sustaining pressure on insurgents in the area, a development that marks a significant milestone in ongoing efforts to secure the North Central region.
Sources told Zagazola Makama that the clearance operation, which commenced on Jan. 20, faced challenges from difficult terrain and vehicle breakdowns, including MRAP and Armoured Fighting Vehicle faults.
Despite these setbacks, troops advanced to clear settlements including Galadima Kogo, Danpkala, Angwan Shawo, Kaure, Onagbi, Iburo, Kudogo, Kori, Kampani Kpakari, Chigwamya, Chikuba, and Nabwi.

At Nabwi, troops encountered a roadside IED followed by enemy fire, which was neutralized through superior firepower.
The sources added that Nigerian Air Force assets provided close air support throughout the operation, while unmanned aerial vehicles from the Niger State Government assisted in monitoring and reconnaissance.
Zagazola note that the operation has broader strategic implications. Shiroro LGA has served as a key operational hub for Boko Haram splinter groups, particularly JAS and ANSARU elements.
These groups, led in the Northwest and North Central zones by top lieutenants including Saddiku, Umar Taraba, Kabiru Doctor, and Mamman Kabir, have exported IED-making expertise to expand attacks into Niger, Zamfara, Kaduna, and Kogi States. Their presence in Allawa–Madawaki and other settlements allowed them to establish clandestine cells, smuggle weapons, and enforce informal taxation on local communities.

Military sources stress that sustained clearance operations, coupled with intelligence-led surveillance and cooperation with air component, remain critical to denying freedom of action to insurgents.

The ongoing operations in Shiroro will not only restore civilian confidence but will also prevent JAS and Boko Haram splinter cells from consolidating influence in key strategic corridors linking the Northeast to the Northwest and North Central regions,” a source said.
Troops clear multiple settlements in Shiroro LGA, neutralize IEDs during clearance operation
News
Troops recover AK-47 rifle in Taraba during cordon-and-search operation
Troops recover AK-47 rifle in Taraba during cordon-and-search operation
By: Zagazola Makama
Troops of the 114 Battalion, in conjunction with Department of Intelligence and Analysis (DIA) operatives, have recovered an AK-47 rifle and ammunition during a cordon-and-search operation in Murubai Village, Ardo Kola Local Government Area of Taraba State.

Sources told Zagazola Makama that the operation, conducted on Jan. 22, followed credible intelligence regarding the presence of arms in the village.
The source said the search was carried out at the residence of one Bazoe John, who was not found during the operation. Authorities recovered one AK-47 rifle, one magazine and four rounds of 7.62mm special ammunition, which are now in the custody of the troops.

The source added that the operation comes after the earlier arrest of two suspected gunrunners, identified as Christopher Adamu and James Yangyang, at Sebos Joint in Mayo Dassa, Jalingo LGA and Tautre Village in Ardo Kola LGA on Jan. 11 and 12 respectively.
Troops recover AK-47 rifle in Taraba during cordon-and-search operation
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