Nigeria: 61% of Nigerians want lower interest rates, says CBN survey

A majority of Nigerian households and businesses want the Central Bank of Nigeria (CBN) to reduce interest rates, with 60.9 per cent of respondents to the apex bank’s August 2026 Inflation Expectations Survey calling for lower rates amid persistent concerns over rising business and living costs.

The findings come ahead of the Monetary Policy Committee (MPC) meeting scheduled for September 21 and 22, where interest rates and other monetary policy measures are expected to remain a key focus.

The CBN has already reduced its monetary policy rate (MPR) from a recent high of 27.5 per cent to 26.5 per cent. Despite the reduction, Nigeria’s interest rate remains among the highest in Africa, ranking second after Zimbabwe.

The survey, published by the CBN’s Statistics Department, showed that 11.7 per cent of respondents preferred an increase in interest rates, while 27.4 per cent wanted rates to remain unchanged.

The preference for lower interest rates was particularly strong among households, although businesses also recorded significant demand for a reduction.

The findings highlight the continued pressure high borrowing costs are placing on economic activity, particularly as businesses contend with elevated operating expenses and households face rising costs of essential goods and services.

The demand for lower rates also comes against the backdrop of persistent inflation concerns, even as perceptions of price pressures showed a marginal improvement in August.

The CBN’s Inflation Perception Index declined from 40 points in July to 39.6 points in August.

Inflation remains a major concern

Although the overall perception of inflation eased slightly, 64.3 per cent of respondents still considered inflation to be high in August, compared with 66.3 per cent in July.

Among businesses, the proportion that perceived inflation as high fell from 65.4 per cent to 61.8 per cent. Household perception, however, recorded only a marginal decline, moving from 67.3 per cent in July to 67.2 per cent in August.

Respondents identified energy costs, insecurity, interest rates, transportation, natural disasters and foreign exchange conditions as the major factors contributing to elevated inflation.

For businesses, energy was the leading factor influencing inflation perceptions, scoring 73.5 per cent. It was followed by insecurity at 67.1 per cent, interest rates at 66.9 per cent and the exchange rate at 66.4 per cent.

Among households, interest rates ranked as the most significant inflation driver at 63.8 per cent, followed by transportation at 56.4 per cent, energy at 54.2 per cent and natural disasters at 50.3 per cent.

Smaller businesses and lower-income households face greater pressure

The survey also revealed significant differences in how inflation is being experienced across business sizes and household income groups.

Micro businesses recorded the highest inflation perception at 101.4 per cent, compared with 63.3 per cent among medium-sized firms, 63.1 per cent for large businesses and 57.4 per cent for small businesses.

Household income also influenced perceptions of inflation. Respondents earning below N70,000 monthly recorded the highest perception of high inflation at 68.4 per cent, while those earning above N450,000 reported the lowest at 30.8 per cent.

Rural households also experienced greater inflation pressure than those in urban areas. About 65.7 per cent of rural respondents perceived inflation as high, compared with 63.2 per cent among their urban counterparts.

The figures point to the uneven impact of inflation, with smaller businesses and lower-income households appearing more exposed to rising prices and cost pressures.

Respondents expect gradual inflation moderation

Despite continued concerns about prices, the survey indicated that respondents expect inflationary pressures to moderate gradually over the coming months.

The CBN said businesses and households anticipated a decline in inflation over the next three and six months.

Among businesses, 29.4 per cent expected inflation to moderate over the next six months, compared with 16.9 per cent that anticipated easing within the next month.

For households, 23.2 per cent expected inflation to moderate over the next six months.

However, expectations for higher inflation-related expenditure remain strong in the near term.

About 60.1 per cent of businesses reported increased expenditure due to inflation in August, compared with 51.9 per cent of households.

Looking ahead, 60.3 per cent of all respondents expect inflation-related expenditure to increase next month. The proportion rises to 61.5 per cent over the next three months before easing slightly to 59.9 per cent over the next six months.

CBN communication records high level of public attention

The survey also showed that CBN communication on inflation and interest rates has significant reach among respondents.

About 93.7 per cent said they follow the apex bank’s communication on inflation and interest rates, while 92.9 per cent considered the CBN’s communication on inflation to be transparent.

The findings highlight the importance of monetary policy communication as the CBN balances the need to contain inflation with growing calls from households and businesses for lower borrowing costs.

With the MPC meeting scheduled for September 21 and 22, the survey provides further insight into how consumers and businesses are responding to Nigeria’s current interest rate and inflation environment.