As the Monetary Policy Committee of the Central Bank of Nigeria (CBN) prepares for its 304th meeting on February 23 and 24, a new survey by the CBN indicates that most Nigerians are hoping for a reduction in lending rates, even as inflation remains a pressing concern.
Findings from the apex bank’s January 2026 Household Expectations Survey reveal that 65.0 per cent of respondents favour a cut in interest rates. In comparison, 12.2 per cent prefer an increase, while 15.1 per cent want rates maintained at current levels. Another 7.7 per cent expressed no opinion.
The report stated, “Majority of respondents prefer lower interest rates, with 65.0 per cent indicating a desire for rates to decline.”
The preference for cheaper borrowing comes months after the committee decided to hold the Monetary Policy Rate at 27.0 per cent in November 2025, following a 50-basis-point reduction in September. When asked to weigh inflation control against affordable credit, 50.1 per cent of respondents chose to keep rates low even if inflation rises. Meanwhile, 41.8 per cent supported raising rates to curb inflation, and 8.2 per cent had no view.
However, anxiety over rising prices remains widespread. About 66.6 per cent said the economy would weaken if inflation accelerates beyond its current pace. Only 9.6 per cent believe faster price growth would strengthen the economy, while 20.0 per cent said it would have no impact. The data also suggests that while Nigerians remain cautious about inflation, many are prioritising short-term relief through lower borrowing costs.
Consumer sentiment stayed positive for the third consecutive month in January, although momentum slowed. The Overall Consumer Sentiment Index dropped to 2.8 points from 4.8 points in December 2025. The Economic Condition Index stood at 7.4 points, reflecting optimism about broader economic prospects. The Family Income Sentiment Index rose to 9.1 points, indicating improved expectations around earnings. Still, the Family Financial Situation Index remained negative at -8.2 points, highlighting ongoing financial strain at the household level.
Perceptions of price trends improved slightly. The Consumer Sentiment Index on price changes turned positive at 4.2 points, up from minus 1.4 points in December, suggesting expectations that inflationary pressures could ease in the near term.
Spending habits show households remain focused on essentials. Food and other household items posted the highest expenditure outlook at 62.7 points for the current month, followed by education at 35.9 points and transportation at 23.4 points. Food spending is expected to stay elevated over the next six months at 63.6 points.
Demand for big-ticket purchases remains weak. The Buying Intention Index for major items stood at 22.8 points for the current month and is projected to rise slightly to 28.5 points over six months. All readings remain below the 50-point mark, indicating cautious discretionary spending.
At its November 2025 meeting, five members of the 12-person committee voted for a 50-basis-point rate cut to 26.5 per cent, citing easing inflation and improved economic conditions. However, the majority opted to retain the benchmark rate at 27.0 per cent, reflecting continued caution over inflation risks.
