The Central Bank of Nigeria says 63.3 per cent of Nigerians are calling for a reduction in interest rates ahead of the Monetary Policy Committee meeting scheduled for May 19 and 20, 2026.
The disclosure was contained in the CBN’s April 2026 Inflation Expectations Survey released by the apex bank’s Statistics Department under the Economic Policy Directorate.
According to the report, most respondents favoured lower borrowing costs despite persistent inflationary pressures across the economy.
The survey showed that while 63.3 per cent supported a rate cut, 26 per cent preferred retaining current rates, while only 10.7 per cent backed another interest rate hike.
The findings come as the MPC prepares to decide on the country’s monetary policy direction amid rising inflation, exchange rate volatility, insecurity and growing energy costs.
The report also revealed worsening inflation concerns among Nigerians in April 2026.
According to the CBN, 67.2 per cent of respondents described inflation as high, compared to 56.4 per cent recorded in March.
The apex bank stated that the Inflation Perception Index stood at 40.5 points in April, indicating that many Nigerians still consider inflation elevated.
Households appeared more affected by rising prices than businesses.
The proportion of households that viewed inflation as high rose from 61.7 per cent in March to 68.8 per cent in April, while the figure for businesses increased from 51.9 per cent to 65.9 per cent.
Micro businesses recorded the highest inflation perception at 69.9 per cent, while medium-sized businesses had the lowest at 63.2 per cent.
The survey further showed that low-income earners were the hardest hit by inflation.
Households earning below N70,000 monthly recorded the highest inflation perception at 77.9 per cent, while respondents earning between N250,001 and N350,000 reported the lowest inflation concerns.
Rural residents also reported higher inflation perception than urban dwellers.
Respondents identified energy costs, transportation expenses, exchange rate pressures, insecurity and infrastructure challenges as the major factors driving inflation across the country.
Despite current economic pressures, many respondents expressed optimism that inflation could ease over the next six months.
The report indicated that while most respondents still expect inflation to rise in the short term, the number of Nigerians expecting inflation to decline gradually increased over longer periods.
On spending expectations, 67.9 per cent of respondents projected higher expenditure levels this month, with businesses recording slightly higher spending expectations than households.
The survey covered 3,587 respondents made up of firms and households selected from the National Bureau of Statistics and National Population Commission databases.
Meanwhile, economists and market analysts have predicted that the MPC may retain the current monetary policy stance despite mounting pressure from businesses and households.
Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, warned that further monetary tightening could weaken economic growth, discourage investments and hurt the real sector.
According to him, Nigeria’s inflation challenges are largely driven by structural issues such as rising energy costs, logistics bottlenecks, poor infrastructure and transportation expenses rather than excessive consumer demand.
He noted that additional interest rate hikes could worsen borrowing conditions for businesses and reduce investment activities at a time when the economy requires stronger growth and job creation.
Analysts at United Capital Plc Research also projected that the MPC would likely maintain the Monetary Policy Rate at 26.5 per cent while retaining other monetary policy parameters.
The analysts explained that although inflation remains elevated, much of the current pressure is supply-driven, making further rate hikes less effective in controlling prices.
They also cited slowing business activities and weakening economic indicators as reasons the MPC may avoid additional tightening during the upcoming meeting.
