Ahead of today’s announcement of decisions taken at the Monetary Policy Committee’s (MPC) 301th meeting, a growing number of Nigerians have expressed the need for a cut in benchmark interest rates, even as borrowing costs are widely expected to remain elevated.
The result of the Central Bank of Nigeria (CBN) June 2025 Inflation Expectations Survey, indicated that a significant 65.8 per cent of respondents are calling on the CBN to reduce interest rates, reflecting growing public discontent with current borrowing costs. Only 23 per cent of those surveyed said rates should remain unchanged, while 11.2 percent supported a rate hike.
The CBN surveys released over the weekend indicate that a majority of citizens and businesses are hoping for monetary easing amid ongoing economic pressure and weak household confidence.
Only 23 per cent of those surveyed said rates should remain unchanged, while 11.2 per cent supported a rate hike.
The call for a rate cut is echoed in the Household Expectations Survey, which shows that 62.4 per cent of respondents favour a reduction in interest rates to ease the financial burden on homes and small businesses. This aligns with rising concerns over inflation and tightening credit conditions that have squeezed consumer purchasing power in recent months.
The report further reveals that when asked to choose between lowering rates to spur credit access or keeping them high to fight inflation, 45 per cent preferred a cut, while 40.3 per cent supported further tightening. The remainder of respondents were either neutral or uncertain.
“A significant majority of surveyed households believe that the Nigerian economy will weaken if prices were to rise faster than the current rate,” the CBN noted in the report, pointing to rising inflation anxiety among Nigerians.
Despite recent declines in the inflation rate, households remain pessimistic about their economic outlook. The overall consumer sentiment index dropped to -13.2 points in June, indicating weak optimism. Similarly, the Family Financial Situation Index worsened to -22.3 points, while the Family Income Sentiment remained negative at -5.9 points.
Businesses are not optimistic either, as according to the CBN’s June 2025 Business Expectations Survey, firms across manufacturing, services, construction and trade sectors anticipate higher borrowing costs over the next six months, citing interest rates, credit access, and energy prices as major bottlenecks to operations.
Meanwhile, the business confidence index improved modestly to 20.7 points in June, and is projected to rise further to 41.3 points by November, suggesting that despite cost constraints, firms remain hopeful of a policy shift or improved macroeconomic environment.
CBN governor Olayemi Cardoso is expected to announce the Committee’s policy decisions at the end of the two-day meeting on Tuesday, which could set the tone for credit and investment conditions in the second half of 2025.
At its 300th MPC meeting held in May, the apex bank had maintained the Monetary Policy Rate (MPR) at 27.5 per cent, citing the need to consolidate gains made in inflation moderation. However, with consumer and business sentiment now pointing to tighter financial conditions, stakeholders are keenly watching for a possible policy shift.
