The Central Bank of Nigeria says 63.3 per cent of Nigerians want interest rates reduced ahead of the Monetary Policy Committee meeting scheduled for May 19 and 20, 2026.
The apex bank disclosed this in its April 2026 Inflation Expectations Survey Report, released by its Statistics Department under the Economic Policy Directorate on its website and obtained by The PUNCH on Sunday.
The report found that most respondents preferred lower borrowing costs despite persistent inflationary pressures across the economy. It stated, “The survey revealed high public engagement with CBN communications (92.1 per cent), a general perception of transparency (93.3 per cent), and a strong desire for a reduction in interest rates (63.3 per cent).”
According to the report, 26.0 per cent of respondents wanted interest rates retained at current levels, while 10.7 per cent supported a further rate hike. The development comes as the MPC prepares to take another decision on the Monetary Policy Rate amid concerns over inflation, exchange rate pressures, insecurity, and rising energy costs.
The survey showed that inflation perception worsened in April 2026, with 67.2 per cent of respondents describing inflation as high, up from 56.4 per cent recorded in March 2026.
The CBN noted that the Inflation Perception Index stood at 40.5 points in April, indicating that respondents still considered inflation elevated. It stated, “The Inflation Perception Index stood at 40.5 points in April 2026, suggesting that respondents still perceive inflation as high.”
The report further showed that inflation concerns were more pronounced among households than businesses. It stated that the proportion of households that perceived inflation as high increased from 61.7 per cent in March to 68.8 per cent in April, while the figure for businesses rose from 51.9 per cent to 65.9 per cent within the same period.
Analysis by business size showed that micro businesses recorded the highest inflation perception at 69.9 per cent, while medium businesses had the lowest at 63.2 per cent. The survey also revealed a sharp disparity across income groups.
According to the report, households earning below N70,000 monthly recorded the highest inflation perception at 77.9 per cent, while respondents earning between N250,001 and N350,000 reported the lowest perception of high inflation at 46.6 per cent.
Rural households were also more affected, with 70.4 per cent reporting high inflation perception compared to 67.6 per cent among urban households. On the major drivers of inflation, respondents identified energy costs, transportation, exchange rate pressures, insecurity, and infrastructure challenges as the top factors fuelling rising prices.
The report stated, “Business and household respondents identified energy, transportation, exchange rate, and infrastructure as the major drivers of their perceptions of inflation.”
Despite the current inflation concerns, respondents expressed optimism that inflationary pressures could moderate over the next six months.
Further analysis showed that 58.5 per cent of respondents expected inflation to increase next month, while 56.7 per cent and 54.4 per cent expected inflation to rise over the next three and six months, respectively. However, the proportion expecting inflation to decline increased steadily from 11.0 per cent for next month to 20.4 per cent over the next six months.
On expenditure outlook, the report showed that 67.9 per cent of respondents expected spending to rise in the current month, with businesses recording slightly higher expenditure expectations at 69.0 per cent compared to 66.7 per cent for households.