Lower interest rates are preferred by most Nigerians ahead of the CBN MPC meeting, according to the latest inflation survey

The Central Bank of Nigeria has revealed that 63.3 per cent of Nigerians want lower interest rates ahead of the Monetary Policy Committee meeting scheduled for May 19 and 20, 2026.

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The apex bank disclosed this in its April 2026 Inflation Expectations Survey Report released by its Statistics Department under the Economic Policy Directorate.

According to the report, most respondents favoured lower borrowing costs despite mounting inflationary pressures across the economy.

“The survey revealed high public engagement with CBN communications (92.1 per cent), a general perception of transparency (93.3 per cent), and a strong desire for a reduction in interest rates (63.3 per cent),” the report stated.

The survey showed that 26 per cent of respondents preferred retaining current rates, while 10.7 per cent supported another increase.

The findings come as the MPC prepares to decide on the Monetary Policy Rate amid persistent concerns over inflation, exchange rate volatility, insecurity and rising energy costs.

The report indicated that inflation perception worsened significantly in April 2026, with 67.2 per cent of respondents describing inflation as high, compared to 56.4 per cent recorded in March.

“The Inflation Perception Index stood at 40.5 points in April 2026, suggesting that respondents still perceive inflation as high,” the CBN said.

Households appeared more affected 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 business respondents increased from 51.9 per cent to 65.9 per cent within the same period.

Micro businesses recorded the highest inflation perception at 69.9 per cent, while medium-sized firms posted the lowest at 63.2 per cent.

The survey also revealed stark income disparities. 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 level at 46.6 per cent.

Rural households were more affected than urban residents, with 70.4 per cent reporting high inflation perception compared to 67.6 per cent in urban areas.

Respondents identified energy costs, transportation expenses, exchange rate pressures, insecurity and infrastructure challenges as the major drivers of rising prices.

Despite current concerns, many respondents expressed cautious optimism that inflationary pressures could ease over the next six months.

The report showed that 58.5 per cent expected inflation to rise next month, while 56.7 per cent and 54.4 per cent anticipated increases over the next three and six months respectively. However, expectations for declining inflation also improved steadily over the six-month outlook.

The survey covered 3,587 respondents, including 1,923 firms and 1,664 households selected from the National Bureau of Statistics establishment frame and the National Population Commission’s National List of Enumeration Areas.

Meanwhile, economist and Chief Executive Officer of the Centre for the Promotion of Private Enterprise, Muda Yusuf, warned against further monetary tightening ahead of the 305th MPC meeting.

Yusuf said rising political spending ahead of the 2027 elections and improved allocations to states could increase liquidity and inflationary pressures, potentially influencing the committee towards maintaining its current tight stance.

However, he cautioned that additional rate hikes could weaken investment, suppress private sector growth and slow economic recovery.

“The Nigerian economy remains fragile and structurally constrained. Further tightening of monetary conditions could significantly weaken credit expansion, dampen investment appetite, and undermine the fragile recovery momentum within the real sector,” Yusuf said.

Analysts at United Capital Plc also projected that the MPC would likely retain the current policy stance despite rising inflation concerns.

In a Monetary Policy Watch report dated May 14, 2026, the analysts said the committee faced increasing pressure to balance inflation control with economic growth.

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The firm projected that the MPC would maintain the Monetary Policy Rate at 26.5 per cent, retain the Cash Reserve Ratio for commercial banks at 45 per cent and keep the liquidity ratio at 30 per cent.