65.5% Nigerians support lower lending rates – CBN
A recent Household Expectations Survey conducted by the Central Bank of Nigeria in February 2025 has revealed that a majority of Nigerian households, 65.5 per cent, believe that lowering lending rates would be the most beneficial move for the economy.
The survey, which gauges public perception on key economic factors such as inflation, interest rates, exchange rates, and overall economic confidence, provides insights into expectations for the next six months.
According to the findings, only 10.4 per cent of respondents supported an increase in interest rates, while 12.5 per cent preferred them to remain unchanged.
Meanwhile, 11.6 per cent of those surveyed were uncertain about the direction interest rates should take.
The data suggests a strong public belief that reducing borrowing costs would enhance household financial stability, boost business growth, and promote economic recovery.
The survey also examined how inflation influences public sentiment about the economy.
A significant 68.1 per cent of respondents expressed concern that a rapid surge in prices would weaken Nigeria’s economy, whereas only 5.5 per cent believed inflation could strengthen it.
While 18.3 per cent felt that rising prices would have no impact, 8.1 per cent were unsure about its economic consequences. These figures highlight growing anxiety about the rising cost of living and its effect on purchasing power.
Interest Rates vs. Inflation Control
When presented with a choice between raising interest rates to curb inflation or keeping interest rates low despite inflation, respondents were almost evenly divided.
A slight majority (44.1 per cent) preferred to reduce interest rates, even if it resulted in higher inflation, while 42.1 per cent supported raising rates to control inflation. Meanwhile, 13.8 per cent remained undecided.
The report also measured consumer sentiment over different periods. In February 2025, confidence improved from -10.8 index points in January to -5.8, indicating a decrease in economic pessimism.
Projections suggest that by May 2025, consumer sentiment will turn positive, reaching 4.0 index points, reflecting growing optimism about economic conditions.
Looking ahead to August 2025, sentiment is expected to rise further to 12.3 index points, signaling increasing confidence in Nigeria’s economic recovery.
The CBN’s Household Expectations Survey offers valuable insights into how Nigerians perceive the current economic climate and its likely trajectory in the coming months.
