Nigeria's central bank raised its benchmark lending rate by 150 basis points to 26.25% from 24.75%, in a decision announced on Tuesday.

Analysts had widely predicted another hike given inflation has continued to soar and the local naira currency has been highly volatile.

The decision is the third rate increase this year, after hikes of 200 basis points in March and 400 basis points in February.

Inflation reached a 28-year high of 33.69% year-on-year in April, spurred by the government slashing petrol and electricity subsidies and twice devaluing the naira.

(Reporting by Chijioke Ohuocha, Elisha Bala-Gbogbo, MacDonald Dzirutwe Editing by Bate Felix)