65.5% of Nigerians favor lower lending rates – CBN

A recent Household Expectations Survey conducted by the Central Bank of Nigeria in February 2025 has revealed that 65.5% of Nigerians support a reduction in lending rates, believing it would benefit the economy.

The survey, which assesses public perception on key economic indicators such as inflation, interest rates, exchange rates, and overall economic confidence, provides insights into expectations for the next six months.

According to the findings, only 10.4% of respondents backed an increase in interest rates, while 12.5% preferred the status quo. Meanwhile, 11.6% were uncertain about the best course of action.

The data indicates strong public sentiment that lower borrowing costs could improve household financial stability, drive business growth, and support economic recovery.

The survey also explored how inflation influences public sentiment. A significant 68.1% of respondents expressed concern that a surge in prices would weaken Nigeria’s economy, while only 5.5% believed inflation could have a positive impact.

While 18.3% felt that rising prices would have no effect, 8.1% were unsure about its economic consequences. The figures underscore widespread anxiety over the rising cost of living and its impact on purchasing power.

When asked to choose between raising interest rates to curb inflation or keeping rates low despite inflation, respondents were nearly split.

A slight majority (44.1%) favored reducing interest rates, even if it led to higher inflation, while 42.1% supported an interest rate hike to control inflation. The remaining 13.8% were undecided.

The report also measured consumer sentiment, showing an improvement in economic outlook. In February 2025, confidence improved from -10.8 index points in January to -5.8, reflecting reduced economic pessimism.

Projections indicate that by May 2025, consumer sentiment will turn positive, reaching 4.0 index points, with further growth to 12.3 index points by August 2025—a sign of increasing optimism.

The CBN’s Household Expectations Survey provides valuable insights into public perceptions of Nigeria’s economic climate, offering a glimpse into potential trends in the coming months.