The report of a new Household Expectations Survey by the Central Bank of Nigeria (CBN) has revealed that 65.5 per cent of Nigerian households want lower lending rates.
Lower lending rates, according to the respondents, would be best for the economy.
The survey which was conducted in February 2025, brought to the fore, public perception of key economic indicators, including inflation, interest rates, exchange rates, and economic confidence over the next six months.
The CBN’s Household Expectations Survey shows how Nigerians perceive the current economic environment and its future trajectory.
Findings of the survey show that only 10.4 per cent of respondents believe that interest rates should increase, and 12.5 per cent prefer them to remain unchanged, while 11.6 per cent expressed uncertainty about the direction of interest rates.
According to the findings, most Nigerians believe lower borrowing costs would improve household finances, business growth, and economic stability.
The survey also examined how inflation affects public perception of economic strength and 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, an indication of a significant concern about the rising cost of living and its effect on purchasing power.
Also, 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 and 13.8 per cent were undecided, when asked to choose between raising interest rates to control inflation or keeping interest rates low and allowing inflation to rise.
On the issue of consumer sentiment about the economy over different time periods, the survey found that in February 2025, consumer confidence improved from -10.8 index points in the previous month to -5.8, indicating a decline in pessimism.
Based on the survey findings, it is projected that by May 2025, consumer sentiment will turn positive, reaching 4.0 index points, reflecting a more optimistic outlook on the macroeconomic landscape.
Consumer sentiment is further expected to strengthen in August 2025, with the index rising to 12.3 points, suggesting increasing confidence in economic recovery.
