Nigeria, Jan. 1 -- Nigeria entered the year with inflation easing but interest rates still at crisis levels, forcing the CBN to balance early signs of price relief against the risk of losing hard-won credibility.

The CBN in 2024 had fought inflation with one of its most aggressive tightening measures, raising interest rates five times and lifting the benchmark rate by 850 basis points in seven months. The aim was to drain excess liquidity, curb price pressures and restore policy credibility after years of loose monetary conditions.

The move pushed the benchmark interest rate above 27 per cent. In the early part of the year, the CBN faced a delicate choice of either easing or keep policy environment tight until inflation was firmly under...