A new survey by the Central Bank of Nigeria (CBN) has revealed that 65.5% of Nigerian households support a reduction in lending rates, as they believe it would be beneficial for the economy. Conducted in February 2025, the Household Expectations Survey gathered public opinions on key economic factors like inflation, interest rates, and general economic outlook for the next six months. Only a small percentage, 10.4%, support an increase in rates, while 12.5% prefer rates to remain the same.
The survey results indicate a general belief among Nigerians that reducing borrowing costs could stimulate household finances, boost business growth, and stabilize the economy. In addition to lending rates, inflation concerns were also a major focus. A substantial 68.1% of respondents believe that rapid price increases would weaken the economy, further highlighting concerns over the rising cost of living and its impact on purchasing power.
When asked whether interest rates should rise to control inflation or remain low despite potential inflationary pressures, responses were almost evenly split. 44.1% of participants favored reducing interest rates even if it led to higher inflation, while 42.1% preferred raising rates to curb inflation. A significant portion, 13.8%, was uncertain about the best course of action. This division reflects the ongoing debate over how best to balance interest rates and inflation.
Despite these concerns, the CBN’s survey also highlighted a slight improvement in consumer sentiment, with the confidence index rising from -10.8 to -5.8 points in February 2025. Projections indicate that consumer sentiment will turn positive by May 2025, and further strengthen by August 2025, suggesting growing optimism about Nigeria’s economic recovery.
source: punch