65 % of Nigerians Call for Lower Interest Rates, CBN Household Survey Shows

Central Bank of Nigeria Survey Finds Two-Thirds of Citizens Back Lower Interest Rates

A significant majority of Nigerian households expressed a preference for lower interest rates in the Central Bank of Nigeria’s (CBN) January 2026 Household Expectations Survey, with 65 per cent of respondents indicating that borrowing costs should fall ahead of the next Monetary Policy Committee (MPC) meeting scheduled for 25–26 February 2026. The results were published in advance of the MPC deliberations and reflect widespread public concern about high lending rates and credit conditions.

Survey Findings: Public Preferences on Monetary Policy

The Household Expectations Survey a monthly instrument designed to gauge consumer sentiment on macroeconomic conditions reveals that a clear majority of Nigerians favour a reduction in the Monetary Policy Rate (MPR) and associated lending rates. Specifically:

• 65 per cent of respondents want interest rates to be lowered.

• 12.2 per cent prefer an increase in rates.

• 15.1 per cent favour keeping rates unchanged.

• 7.7 per cent expressed no view on the direction of rates.

The survey further highlights that when presented with two trade-offs prioritising inflation control versus lower rates even if inflation rises 50.1 per cent of participants chose lower rates, while 41.8 per cent opted for a continued tightening stance.

Context: Nigeria’s Interest Rate Environment and Policy Stance

At its last meeting in November 2025, the CBN’s Monetary Policy Committee retained the MPR at 27 per cent, marking a cautious stance amid moderating inflation and broader macroeconomic dynamics.

High benchmark rates have been maintained as part of the central bank’s efforts to anchor inflation expectations and support the naira, even as households and businesses face elevated borrowing costs. However, inflation pressures have shown signs of easing in recent months, with headline inflation slowing over consecutive periods, bolstering arguments for potential monetary easing.

Against this backdrop, the survey results indicate that a substantial segment of Nigeria’s population is prioritising cheaper credit and relief from high financing costs, particularly as households contend with fiscal pressures, cost of living challenges and barriers to accessing affordable loans.

Implications for Monetary Policy and Economic Outlook

The strong preference for lower interest rates among survey respondents underscores key tensions in Nigeria’s macroeconomic policy landscape. On one hand, sustained high interest rates support price stability objectives; on the other, high borrowing costs constrain credit accessibility for households and small businesses, potentially dampening consumption and investment.

Policymakers must consider these competing priorities when setting the MPR and related tools. A shift toward a lower policy rate could stimulate economic activity by reducing financing costs, but it also carries risks that inflationary pressures could re-accelerate if demand outpaces supply conditions.

The MPC’s decision in late February 2026 will therefore be closely watched by investors, policymakers and economic analysts as an important signal of the central bank’s policy direction in balancing inflation containment with growth support.

The January 2026 CBN Household Expectations Survey highlights that 65 per cent of Nigerians favour a reduction in interest rates, reflecting broad public demand for cheaper credit and monetary easing. As the MPC meets later in February 2026, this sentiment adds a significant dimension to the policy debate on how best to align interest rate decisions with the evolving economic landscape, inflation trends and credit market conditions.