63% of Nigerians want interest rates reduced — CBN 

The Central Bank of Nigeria (Central Bank of Nigeria) says 63.3 per cent of Nigerians prefer a reduction in interest rates ahead of the Monetary Policy Committee meeting scheduled for May 19–20, 2026.

The apex bank disclosed this in its April 2026 Inflation Expectations Survey Report released by its Statistics Department under the Economic Policy Directorate and obtained by The PUNCH.

The report revealed strong public engagement with CBN communications, but also growing pressure on policymakers to ease borrowing costs despite persistent inflation.

Public demand for lower rates

According to the report, 63.3 per cent of respondents supported a cut in interest rates, while 26 per cent preferred rates to remain unchanged. About 10.7 per cent supported a further increase.

“The survey revealed… a strong desire for a reduction in interest rates (63.3 per cent),” the report stated.

The development comes ahead of the Monetary Policy Committee meeting where key decisions will be taken on Nigeria’s Monetary Policy Rate.

Inflation perception still high

The survey showed that inflation perception worsened in April 2026, with 67.2 per cent of respondents describing inflation as high, up from 56.4 per cent in March.

It also reported an Inflation Perception Index of 40.5 points, indicating sustained pressure on households and businesses.

Households recorded higher inflation concerns than businesses, rising from 61.7 per cent in March to 68.8 per cent in April.

Respondents identified energy costs, transportation, exchange rate volatility, insecurity, and infrastructure deficits as major drivers of rising prices.

Micro businesses reported the highest inflation perception at 69.9 per cent, while rural households were more affected than urban respondents.

Households earning below ₦70,000 monthly recorded the highest inflation perception at 77.9 per cent.

Economic outlook and MPC expectations

Economist and CEO of the Centre for the Promotion of Private Enterprise, Muda Yusuf, warned that while tightening monetary policy may control inflation expectations, it could also weaken investment and economic growth.

He noted that inflation in Nigeria is largely driven by supply-side factors such as energy and transportation costs, limiting the effectiveness of interest rate hikes.

“Further tightening of monetary conditions could significantly weaken credit expansion… and undermine recovery,” he said.

Analysts predict policy hold

Research analysts at United Capital Plc projected that the Monetary Policy Committee may retain the current stance at its May 2026 meeting.

They cited persistent inflation, geopolitical tensions, and weak manufacturing indicators as key factors influencing the decision.

The firm expects the Monetary Policy Rate to remain at 26.5 per cent, with other policy parameters unchanged.

The survey highlights a widening gap between public expectations and monetary policy direction, as Nigerians continue to feel the impact of inflation on transport, food, rent, and business operations.

With the MPC meeting approaching, analysts say policymakers face a difficult balancing act between controlling inflation and supporting economic growth.