CBN survey shows more Nigerians want lower interest rates

More than half of Nigerians surveyed by the Central Bank of Nigeria (CBN) want the key borrowing rates to fall ahead of the next monetary policy meeting, considering it best for the economy.

“Majority of respondents prefer lower interest rates, with 65.0 percent indicating a desire for rates to decline,” the CBN said in its latest consumer expectations survey.

The survey adds to expectations around the direction of Nigeria’s Monetary Policy Rate (MPR) as the authorities prepare to meet on February 25th and 26th amid waning inflationary pressures and a steadier naira.

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Despite concerns that lower rates could complicate inflation management, 50.1 percent of Nigerians expressed a preference for a reduction in borrowing costs, underscoring the weight of financing conditions on households and businesses.

Africa’s most populous nation has maintained a tightening monetary policy stance, a key policy measure that has helped contain inflation that spiked to a near three-decade high in 2024. Latest data from the National Bureau of Statistics show prices slowing to 15.10 percent in January from 15.15 percent in December 2025.

The naira is also maintaining its calm, with the local currency quoted at N1,355.42 per dollar at the official window on Friday, 13th February, compared to over N1,400/$ at the beginning of the year. These upsides could give monetary authorities the needed lever to begin an easing cycle after the first cut in five years in September 2025 to 27 percent.

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The CBN’s findings reflect a mixed sentiment about the state of the economy. Overall consumer sentiment in January 2026 stood at 2.8 index points, compared with 4.8 index points in December 2025. Although lower month-on-month, the positive reading marks the third consecutive month of optimism.

The economic condition index printed at 7.4 points in January 2026, which the CBN said reflects sustained optimism about the broader economy. The reading suggests respondents see improvements or stability in macroeconomic conditions.

However, perceptions of personal finances remain weak. The family financial situation index came in at -8.2 points, indicating respondents’ pessimism regarding their household financial situation in January 2026.

The divergence between views of the broader economy and household finances highlights the strain faced by many families despite improving macro indicators. Elevated borrowing costs have increased debt servicing burdens, while credit conditions remain tight across segments of the economy.

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The Monetary Policy Committee’s next decision is emerging as a test of the Central Bank of Nigeria’s inflation-first stance amid mounting strain in the real economy.

Olayemi Cardoso, governor, CBN, has consistently backed orthodox tightening to anchor expectations and reinforce policy credibility. But elevated rates have also tightened credit conditions, raising borrowing costs for manufacturers, small businesses, and consumers.

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The CBN survey data show there remains a strong preference for lower interest rates and highlights pressure at the micro level, where households and firms continue to grapple with weak purchasing power and expensive financing.

The February 23-24 MPC meeting will therefore be parsed for more than its inflation outlook. A hold decision would reaffirm the bank’s commitment to price stability and investor confidence. A rate cut would signal a shift toward supporting domestic demand and easing funding constraints.