A new survey by the Central Bank of Nigeria shows that a majority of Nigerians are calling for lower lending rates as the bank’s Monetary Policy Committee prepares for its next meeting.
The findings were contained in the apex bank’s January 2026 Household Expectations Survey, released ahead of the MPC’s 304th meeting scheduled for February 23 and 24, 2026.
Majority Back Rate Cut
According to the survey, 65 per cent of respondents favour a reduction in lending rates. In contrast, 12.2 per cent support an increase, while 15.1 per cent prefer rates to remain unchanged. About 7.7 per cent expressed no opinion.
The report stated that the majority of respondents indicated a preference for lower interest rates, reflecting public demand for cheaper credit amid ongoing economic pressures.
At its last meeting in November 2025, the MPC retained the Monetary Policy Rate at 27 per cent, following a 50-basis-point reduction in September.
Preference for Cheaper Credit Despite Inflation Risks
The survey also revealed a growing inclination toward looser monetary policy conditions. When respondents were asked to choose between raising rates to curb inflation or keeping rates low even if inflation rises, 50.1 per cent opted for lower rates.
However, inflation concerns remain strong. About 66.6 per cent of respondents said the economy would weaken if prices increased faster than current levels, while only 9.6 per cent believed it would improve under such conditions.
Consumer Sentiment Remains Positive
Consumer sentiment remained positive for the third consecutive month in January, although it moderated slightly.
The Overall Consumer Sentiment Index stood at 2.8 points, down from 4.8 points in December 2025. The Economic Condition Index came in at 7.4 points, indicating continued optimism about the broader economy, while the Family Income Sentiment Index rose to 9.1 points.
However, the Family Financial Situation Index remained negative at minus 8.2 points, pointing to persistent pressure on household finances.
Spending Focused on Essentials
The survey showed that households are still prioritising essential expenses.
Food and other household items recorded the highest expenditure outlook at 62.7 index points, followed by education at 35.9 points and transportation at 23.4 points. Food spending is expected to remain elevated over the next six months.
Demand for high-value items remained weak, with the Buying Intention Index for big-ticket purchases at 22.8 points for the current month, rising slightly to 28.5 points over the next six months. All readings were below the 50-point threshold, indicating continued caution in discretionary spending.
MPC Split on Rate Cut
Earlier in January, the apex bank released personal statements from members of the MPC, revealing that five members supported a 50-basis-point rate cut at the November 2025 meeting.
The members cited sustained disinflation, improved external buffers and stronger growth conditions as reasons for the proposed reduction.
However, the committee eventually voted by majority to retain the benchmark rate at 27 per cent, reflecting continued caution over inflation risks.
