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The Central Bank of Nigeria (CBN) says 63.3% of Nigerians want interest rates reduced, according to its April 2026 Inflation Expectations Survey Report, ahead of the Monetary Policy Committee (MPC) meeting scheduled for May 19–20.
The survey, published by the CBN’s Statistics Department, found that while 26% preferred rates unchanged and 10.7% supported further hikes, most respondents favoured lower borrowing costs despite persistent inflationary pressures.
The report noted strong public engagement with CBN communications (92.1%) and a general perception of transparency (93.3%). It also showed worsening inflation perception, with 67.2% of respondents describing inflation as high in April, up from 56.4% in March.
Households were more affected than businesses, with 68.8% of households perceiving inflation as high compared to 65.9% of firms. Micro businesses recorded the highest inflation perception at 69.9%, while medium businesses had the lowest at 63.2%.
Income disparities were evident: households earning below ₦70,000 monthly reported the highest inflation perception (77.9%), while those earning ₦250,001–₦350,000 reported the lowest (46.6%). Rural households (70.4%) also felt inflation more acutely than urban ones (67.6%).
Respondents identified energy costs, transportation, exchange rate pressures, insecurity, and infrastructure challenges as the main drivers of inflation. Despite this, some expressed optimism that inflationary pressures could ease over the next six months.
Economist Muda Yusuf warned that further monetary tightening could hurt growth, saying: “The Nigerian economy remains fragile and structurally constrained. Further tightening could weaken credit expansion, dampen investment appetite, and undermine recovery momentum.” He urged a balanced policy stance.
Analysts at United Capital Plc projected the MPC would retain the Monetary Policy Rate at 26.5%, keep the Cash Reserve Ratio at 45%, and maintain the liquidity ratio at 30%, noting that current inflation is largely supply-driven and less responsive to rate hikes.
