On May 22, 2024, the Central Bank of Nigeria (CBN) raised the monetary policy rate (MPR) for the fifth time in a year by 150 basis points, bringing it to 26.25 percent. This liquidity tightening strategy aims to combat inflation, which has surged to 33.69 percent, defend the struggling currency, and stabilise the economy. The rise in inflation is attributed to high energy costs following the removal of fuel subsidies, large fiscal deficits, renewed weakness in the naira, soaring food prices, and persistent insecurity. Analysts suggest that instead of continually tightening liquidity, the CBN and policymakers should focus on addressing the root causes of inflation. The current strategy of liquidity tightening does not appear to effectively target the primary factors driving inflation in Nigeria.