65.5% of Nigerians want lending rates to drop – CBN

A new Household Expectations Survey by the Central Bank of Nigeria (CBN) has revealed that 65.5 per cent of Nigerian households believe a reduction in lending rates would be best for the economy.

The survey, conducted in February 2025, highlights public perception of key economic indicators, including inflation, interest rates, exchange rates, and economic confidence over the next six months.

According to the findings, only 10.4 per cent of respondents believe that interest rates should increase, while 12.5 per cent prefer them to remain unchanged.

Another 11.6 per cent expressed uncertainty about the direction of interest rates.

The data suggests that most Nigerians believe lower borrowing costs would improve household finances, business growth, and economic stability.

The report also examined how inflation affects public perception of economic strength. 68.1 per cent of respondents stated that a rapid increase in prices would weaken the Nigerian economy, while only 5.5 per cent believe it would make the economy stronger.

18.3 per cent felt that rising prices would make no difference, and 8.1 per cent were uncertain about the impact of inflation.

This indicates a significant concern about the rising cost of living and its effect on purchasing power.

When asked to choose between raising interest rates to control inflation or keeping interest rates low and allowing inflation to rise, respondents were nearly split. 44.1 per cent preferred to reduce interest rates, even if it led to higher inflation, while 42.1 per cent favoured raising rates to curb inflation. 13.8 per cent were undecided.

The report also measured consumer sentiment about the economy over different time periods. In February 2025, consumer confidence improved from -10.8 index points in the previous month to -5.8, indicating a decline in pessimism.

By May 2025, consumer sentiment is projected to turn positive, reaching 4.0 index points, reflecting a more optimistic outlook on the macroeconomic landscape. Looking further ahead, consumer sentiment is expected to strengthen in August 2025, with the index rising to 12.3 points, suggesting increasing confidence in economic recovery.

The CBN’s Household Expectations Survey provides a snapshot of how Nigerians perceive the current economic environment and its future trajectory.