A majority of Nigerians favour a reduction in borrowing costs ahead of the next policy meeting of the Central Bank of Nigeria (CBN), underscoring pressure on households and businesses grappling with expensive credit.
In its latest consumer expectations survey, the apex bank said 65 per cent of respondents indicated a desire for interest rates to decline, while 50.1 per cent explicitly backed a cut in borrowing costs — reinforcing market attention on the direction of the Monetary Policy Rate (MPR) when policymakers meet later this month.
The findings come amid moderating inflation and a steadier currency environment. Data from the National Bureau of Statistics show headline inflation easing to 15.10 per cent in January from 15.15 per cent in December 2025. The naira has also stabilised, quoted at about N1,355.42 per dollar at the official window on Feb. 13, compared with over N1,400 at the start of the year.
These developments may give policymakers room to weigh easing after years of aggressive tightening in Nigeria, a stance that helped rein in price pressures that surged to near three-decade highs in 2024. The CBN cut the MPR for the first time in five years in September 2025 to 27 per cent, and expectations are building around whether further adjustments are imminent.
Consumer sentiment data, however, present a mixed picture. Overall confidence slipped to 2.8 index points in January from 4.8 in December, though it remained positive for a third straight month. The economic condition index stood at 7.4 points, signalling sustained optimism about broader macroeconomic conditions.
Household realities tell a different story. The family financial situation index registered –8.2 points, reflecting persistent pessimism about personal finances as elevated borrowing costs and tight credit conditions weigh on disposable incomes and debt servicing.
The divergence highlights the disconnect between improving macro indicators and lived economic experience, where high interest rates continue to strain manufacturers, small businesses and consumers.
CBN Governor Olayemi Cardoso has maintained an orthodox tightening stance aimed at anchoring inflation expectations and reinforcing policy credibility. Yet the survey suggests mounting grassroots pressure for relief through cheaper financing.
The upcoming Monetary Policy Committee decision is therefore shaping into a key policy signal. Holding rates would reinforce the bank’s inflation-first posture and investor confidence, while a cut could indicate a pivot toward stimulating domestic demand and easing funding constraints in the real economy.
