A majority of Nigerians want the country’s central bank to cut interest rates despite persistent inflationary pressures, according to a new survey released ahead of a key monetary policy meeting this week.
The Central Bank of Nigeria (CBN) said 63.3 percent of respondents favoured a reduction in borrowing costs, reflecting growing public frustration over the impact of high interest rates on household and business finances.
The findings were contained in the bank’s April 2026 Inflation Expectations Survey, published by its Statistics Department and released ahead of the Monetary Policy Committee (MPC) meeting scheduled for May 19–20.
The survey also showed that 26 percent of respondents preferred interest rates to remain unchanged, while 10.7 percent supported further rate hikes, highlighting a divided outlook among Nigerians on how to tackle inflation.
Despite public pressure for lower rates, inflation expectations remain elevated across the economy, with respondents reporting worsening price conditions in April compared to the previous month.
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According to the report, 67.2 percent of participants described inflation as “high,” up from 56.4 percent in March, reflecting broad-based concerns over rising living costs.
The Inflation Perception Index stood at 40.5 points, indicating that respondents continue to see inflation as a major economic challenge despite ongoing monetary tightening.
The survey found that households were more affected than businesses, with 68.8 percent of households reporting high inflation perceptions compared to 65.9 percent among firms.
Lower-income groups were particularly affected. Respondents earning below ₦70,000 per month recorded the highest inflation perception at 77.9 percent, underscoring the disproportionate impact of rising prices on vulnerable households.
Rural areas also reported greater pressure, with 70.4 percent of rural respondents describing inflation as high compared with 67.6 percent in urban centres.
Key drivers of inflation identified by respondents included energy costs, transportation, exchange rate volatility, insecurity and infrastructure bottlenecks.
The survey, which sampled 3,587 respondents across households and businesses, highlights the complexity facing policymakers as they attempt to balance inflation control with economic growth concerns.
The data comes at a critical moment for the CBN, which has kept monetary policy tight in recent months in an effort to contain inflation and stabilise the currency.
Economists say the central bank faces a difficult policy choice, as inflation in Nigeria is increasingly driven by supply-side factors rather than excess demand.
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Muda Yusuf, chief executive of the Centre for the Promotion of Private Enterprise, said monetary tightening may not fully address the structural causes of inflation.
He warned that further rate hikes could slow investment, weaken credit expansion and put additional pressure on already fragile economic recovery.
“The Nigerian economy remains fragile and structurally constrained,” Yusuf said, adding that inflation is largely driven by energy costs, transport and infrastructure challenges rather than consumer demand.
Analysts at United Capital Plc also expect the MPC to maintain its current stance at the upcoming meeting, despite rising inflation risks.
They noted that global oil price volatility, linked to geopolitical tensions including the US-Iran conflict, has added further pressure on domestic inflation through higher fuel and logistics costs.
The analysts projected that the benchmark Monetary Policy Rate could remain at 26.5 percent, with other policy parameters unchanged, as authorities attempt to balance inflation control with growth concerns.
Nigeria’s economy is also showing signs of weakening activity, with the Composite Purchasing Managers’ Index slipping into contraction territory in April, raising concerns about slowing business confidence and investment.
While some policymakers argue for continued tightening to anchor inflation expectations, others warn that excessively high interest rates could further constrain credit access and deepen economic hardship.
For now, the survey highlights a widening gap between public expectations for relief and the central bank’s cautious approach to inflation management ahead of its next policy decision.
