As the Central Bank of Nigeria prepares for its 304th Monetary Policy Committee (MPC) meeting on February 23–24, 2026, a new survey shows that most citizens are calling for cheaper credit. According to the bank’s January 2026 Household Expectations Survey, 65 per cent of respondents want lending rates reduced, reflecting mounting pressure on household finances and growing demand for economic relief. The findings come as policymakers weigh inflation risks against the need to stimulate growth.
The MPC had previously retained the Monetary Policy Rate (MPR) at 27.0 per cent during its November 2025 meeting, following a 50-basis-point cut in September. With borrowing costs still high, many Nigerians appear eager for further easing. While 12.2 per cent of respondents prefer higher rates and 15.1 per cent want them unchanged, the majority’s preference for a rate cut highlights the strain many households face in accessing affordable loans for businesses, education, and daily needs.
Despite the strong call for lower interest rates, inflation remains a major concern. About 66.6 per cent of those surveyed believe the economy would weaken if prices rise faster than current levels. Interestingly, when asked to choose between raising rates to curb inflation or keeping them low even if inflation accelerates, 50.1 per cent opted for lower rates. This suggests that for many families, immediate financial survival outweighs longer-term fears about rising prices.
Consumer sentiment data paints a mixed picture. The Overall Consumer Sentiment Index moderated to 2.8 points in January from 4.8 points in December 2025, though it remained positive for the third consecutive month. The Economic Condition Index stood at 7.4 points, indicating cautious optimism about the broader economy. However, the Family Financial Situation Index stayed negative at -8.2 points, underscoring ongoing financial pressure at the household level. Spending patterns further reveal that food remains the top priority, with households allocating most of their budgets to essential items.
Internal divisions within the MPC also reflect the policy dilemma. Five members of the 12-person committee — including former Fidelity Bank executive Aku Odinkemelu, economist Aloysius Ordu, Bandele Amoo of EcoDonini Solutions Ltd, former SEC Director-General Lamido Yuguda, and Professor Murtala Sagagi — voted in November for a 50-basis-point rate cut. They cited sustained disinflation and improving growth conditions. However, the committee ultimately retained the benchmark rate at 27.0 per cent, signaling continued caution over inflation risks. As the next meeting approaches, Nigerians will be watching closely to see whether their demand for lower interest rates shapes the central bank’s next move.
source: punch