Despite rising inflation and mounting economic pressure, most Nigerians are urging the Central Bank to lower borrowing costs, setting the stage for a crucial monetary policy decision this week…..
As the Monetary Policy Committee of the Central Bank of Nigeria prepares to meet on May 19 and 20, fresh data from the apex bank has revealed that a strong majority of Nigerians want interest rates reduced, even as inflation continues to squeeze households and businesses across the country.
According to the bank’s April 2026 Inflation Expectations Survey released by its Statistics Department under the Economic Policy Directorate, 63.3 per cent of respondents are calling for a reduction in interest rates, while 26 per cent prefer rates to remain unchanged. Only 10.7 per cent support another hike.
The findings highlight growing pressure on the central bank to ease borrowing conditions at a time when businesses are struggling with rising operating costs and consumers are battling declining purchasing power.
The report also showed that Nigerians remain deeply worried about inflation. About 67.2 per cent of respondents described inflation as high in April 2026, a noticeable increase from 56.4 per cent recorded in March.
The Inflation Perception Index stood at 40.5 points, a signal that many Nigerians still believe prices remain uncomfortably elevated.
Among households, inflation concerns climbed sharply, with 68.8 per cent saying prices were high, compared to 61.7 per cent in the previous month. Businesses also reported worsening conditions, as the percentage of firms experiencing high inflation jumped from 51.9 per cent to 65.9 per cent.
Small businesses appeared to be the hardest hit. Micro enterprises recorded the highest inflation perception at 69.9 per cent, while medium-sized firms posted the lowest figure at 63.2 per cent.
The survey further exposed the widening pressure on low-income earners. Nigerians earning below ₦70,000 monthly recorded the highest inflation concerns at 77.9 per cent. In contrast, respondents within the ₦250,001 to ₦350,000 income bracket reported the lowest inflation perception at 46.6 per cent.
Rural communities also appeared to be under heavier strain, with 70.4 per cent of rural households saying inflation was high, slightly above the 67.6 per cent recorded in urban areas.
Respondents identified energy costs, transportation expenses, exchange rate instability, insecurity, and poor infrastructure as the major drivers behind the persistent rise in prices nationwide.
“The survey revealed high public engagement with CBN communications, a general perception of transparency, and a strong desire for a reduction in interest rates,” the report noted.
Even with the current pressure, many respondents remain cautiously optimistic that inflation could moderate in the coming months.
While 58.5 per cent expect inflation to rise next month, expectations begin to soften over a longer period. The proportion of respondents who believe inflation could decline rises steadily over a six-month horizon, suggesting that some Nigerians anticipate gradual economic relief later in the year.
The survey also indicated that spending pressures are far from easing. Nearly 68 per cent of respondents expect their expenses to increase this month, with businesses slightly more concerned than households.
The report was based on responses from 3,587 participants, including firms and households selected from data provided by the National Bureau of Statistics and the National Population Commission.
With inflation still elevated, the naira facing pressure, and borrowing costs already at historic highs, all eyes are now on the Monetary Policy Committee as Nigerians wait to see whether the central bank will prioritise inflation control or economic relief.
