Survey has shown that 65% of Nigerians want lower lending rates ahead of CBN MPC Meeting.
NewsOnline Nigeria reports that as members of the Central Bank of Nigeria (CBN) prepare for their 304th Monetary Policy Committee (MPC) meeting scheduled for February 23–24, 2026, new survey data shows that a majority of Nigerians are calling for a reduction in lending rates, despite persistent concerns about inflation.
According to the CBN’s January 2026 Household Expectations Survey, 65.0 per cent of respondents favour a cut in lending rates. In contrast, 12.2 per cent prefer an increase, while 15.1 per cent want rates left unchanged. About 7.7 per cent expressed no opinion.
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The committee retained the Monetary Policy Rate (MPR) at 27.0 per cent at its November 2025 meeting, following a 50-basis-point reduction in September. The latest survey suggests that households are leaning toward looser monetary conditions, even if it complicates efforts to curb inflation.
When asked to choose between raising rates to rein in inflation or keeping rates low even if inflation accelerates, 50.1 per cent opted for lower rates. Meanwhile, 41.8 per cent supported tightening to contain inflation, and 8.2 per cent had no view.
Despite the preference for cheaper credit, inflation concerns remain significant. About 66.6 per cent of respondents said the economy would weaken if prices rose faster than they currently are. Only 9.6 per cent believe the economy would strengthen under that scenario, while 20.0 per cent said it would make no difference.
Consumer sentiment remained positive for the third consecutive month in January, though it moderated. The Overall Consumer Sentiment Index stood at 2.8 points, down from 4.8 points in December 2025.
The Economic Condition Index registered 7.4 points, reflecting continued optimism about general economic prospects, while the Family Income Sentiment Index rose to 9.1 points. However, the Family Financial Situation Index remained negative at -8.2 points, indicating ongoing pressure on household finances.
Perceptions about price movements improved during the month. The Consumer Sentiment Index on price changes turned positive at 4.2 points, up from -1.4 points in December, suggesting expectations that price pressures may ease in the near term.
Spending patterns show households are still prioritising essentials. Food and other household items recorded the highest expenditure outlook at 62.7 index points for the current month. Education followed at 35.9 points, while transportation ranked third at 23.4 points. Food spending is projected to remain elevated over the next six months at 63.6 points.
Demand for high-value items remains subdued. The Buying Intention Index for big-ticket purchases stood at 22.8 points for the current month, rising slightly to 25.0 points over the next three months and 28.5 points over the next six months—well below the 50-point threshold that signals balance between buyers and non-buyers.
Earlier in January 2026, reports showed that five MPC members voted for a 50-basis-point reduction in the MPR at the November 2025 meeting, citing sustained disinflation, stronger external buffers and improving growth conditions. However, the majority opted to retain the benchmark rate at 27.0 per cent, reflecting continued caution over inflation risks.
The upcoming MPC meeting is expected to weigh these competing pressures—household demand for lower borrowing costs and the need to safeguard price stability—before determining the next direction for monetary policy.
